Navigating the 25% Auto Tariff – What Dealers Must Do to Stay Competitive

The U.S. auto industry is bracing for a significant disruption. On April 3, 2025, a 25% tariff on imported vehicles, light-duty trucks, and auto parts will go into effect—forcing dealerships to re-evaluate pricing strategies, marketing priorities, and how they engage with customers online.

What’s Changing—and Why It Matters

The goal of the tariff is to boost domestic manufacturing, but the immediate impact will be felt at the dealership level. According to Cox Automotive, vehicle costs could rise by $3,000 for U.S.-assembled cars and up to $6,000 for those manufactured in Canada or Mexico.

For many buyers—especially those shopping affordable models—this could make vehicles financially out of reach, shrinking the pool of price-sensitive customers.

A Surge in Buyer Urgency

As the deadline approaches, we anticipate a surge of urgency from consumers eager to purchase before prices spike. This creates a short-term window for dealers to drive sales, strengthen customer loyalty, and maximize advertising ROI—if they act fast.

Here’s how your dealership can stay ahead:

1. Shift More Budget to Lower-Funnel Campaigns

Focus on high-intent shoppers. Invest more into paid search and social ads targeting consumers already in-market. Include keywords around “tariffs,” “price increases,” and “limited time” to align with current search behavior and capitalize on buyer urgency.

2. Enhance Your Retargeting Strategy
Buyers who’ve recently browsed your site or vehicle listings are prime candidates to convert. Use dynamic retargeting ads and personalized follow-up to stay top-of-mind—and push them to act before prices increase.

3. Optimize Inventory Visibility
Make sure your online inventory is clean, current, and prominently displays vehicles most likely to be affected by the tariff. Add urgency messaging like “Buy Before Prices Go Up” or “Tariff-Free Pricing Ends Soon” to help drive decision-making.

4. Educate & Communicate Clearly
Transparency will go a long way. Proactively explain what the tariff means for your customers, how it affects pricing, and why now is the right time to buy. This builds trust—and motivates action.

The Bottom Line

The 25% tariff presents both a challenge and an opportunity. Dealers that adapt quickly—shifting their digital strategies, reallocating ad budgets, and leaning into performance-driven marketing—will be best positioned to thrive.
At JET Media, we’re helping dealers respond in real time with digital campaigns built to drive traffic, generate leads, and increase conversion during this high-stakes moment.

Need help shifting your strategy?
Let’s talk about how we can support your store through this transition.