LAS VEGAS (KTNV) — New tariffs on foreign-made vehicles and imported auto parts are already making waves in the U.S. car market, and drivers in the Las Vegas Valley are feeling the effects.
Shakeria Hawkins spoke to an expert to learn what valley drivers can expect.
The Trump administration’s new policy aims to put pressure on international manufacturers, but it’s also creating ripple effects for American consumers.
With price hikes looming, some buyers are rushing to lock in deals before costs climb even higher.
“I wanted an SUV-type model,” said local car buyer Jamar Thomas. “It didn’t necessarily have to be a Volkswagen, but when I came down here and saw this one, I said, ‘Let’s run the numbers on that.’”
Despite knowing prices could rise due to the tariffs, Thomas didn’t let it stop him. “It wasn’t really time for me to get a new car—I could’ve just fixed my old one... but I felt like it was time.”
Dealerships are seeing a clear shift in demand. Foreign models are moving slower off the lot, while American automakers like Ford, GM, Stellantis, and Tesla are experiencing a bump in interest.
“Right now, we have tariffs on imported vehicles,” said economist Alex Jacquez with the Groundwork Collaborative. “That obviously positions American automakers—particularly the big three and Tesla—as the big winners of this trade policy.”
But Jacquez warns it’s not all good news. Those same automakers rely heavily on imported materials, and that means they’re not immune to price increases.
“They’re going to get hit by steel and aluminum tariffs, and also the 25% tariffs on auto parts,” Jacquez explained. “Ford, Subaru, Toyota—they are all telling the market that new car prices are going up unless there are some modifications or deals made.”
Even 'American-Made' Cars Aren’t Safe
That’s because most vehicles, regardless of where they’re assembled, use components that cross international borders multiple times before reaching the production line.
“Even a car built right here in the USA is going to have parts in it that have crossed the Canadian and Mexican borders six, seven, even eight times—and they’re paying that tariff every single time,” Jacquez said.
It’s not just new car buyers feeling the pinch. With the cost of new vehicles going up, many drivers are choosing to hang onto their used cars longer and invest in repairs.
“Since the tariffs, everybody is keeping their used cars and fixing them,” said Michael Young, a delivery driver for O’Reilly Auto Parts. “I’m running all over town delivering parts.”
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What Should Buyers Do Now?
If you’re thinking about buying a vehicle soon, economists say it’s better to act sooner rather than later.
“The best time would’ve been a couple months ago,” Jacquez said. “But if you missed that window and need to buy a car now, at least you have some certainty on pricing today.”
Between rising sticker prices, repair costs, and increasing insurance premiums, the new tariffs are reshaping the car market faster than many expected. And experts say the biggest price jumps could hit as early as this summer.
