Tariffs have long been a political flashpoint, but a new survey reveals the tangible impact they are having on America’s auto dealers — and their customers.
In a poll of 1,000 auto dealers across the country, 82% reported raising vehicle prices because of tariffs, and three out of four said tariffs have cut into their profits. Perhaps most strikingly, an overwhelming majority said they want tariffs rolled back.
This survey sheds light on the very real costs of tariffs: higher sticker prices, thinner profit margins, and strained relationships with customers. Below, we break down the findings.
Tariffs Are Driving Up Vehicle Prices
The survey found that 42% of auto dealers increased prices across all inventory, while another 40% raised prices only on certain vehicles. That leaves just 11% who have not raised prices at all.
For consumers, this means the effects of tariffs are widespread: whether you’re shopping for a sedan or a pickup truck, chances are you’re paying more than you would have before tariffs were imposed.
Dealers Overwhelmingly Support a Rollback
If there’s one area where auto dealers agree, it’s that tariffs should be rolled back.
A combined 72% of dealers support reducing or removing tariffs, with 34% strongly supporting and 38% somewhat supporting a rollback. Only 4% oppose, while 24% remain neutral.
This kind of near-consensus is unusual in an industry that often divides on regulatory and economic policy. But on tariffs, the message is clear: dealers see them as a drag on business.
The Hardest Part: Explaining to Customers
When asked about the biggest challenge tariffs create, nearly half of dealers (46%) pointed to explaining price hikes to customers.
This is a telling data point. While tariffs are set by policymakers in Washington, the burden of justification falls on the person across the desk at the dealership. Dealers must explain why cars that once cost $30,000 now cost thousands more — often to skeptical buyers.
Other challenges include:
- Sourcing parts (21%)
- Delayed inventory turnover (18%)
- Strain on floorplan financing (5%)
- Warranty risk on imported parts (4%)
But the dominant theme is clear: tariffs strain customer trust.
Margins Are Getting Squeezed
The auto industry already runs on tight margins, and tariffs appear to be squeezing them even further.
- 38% of dealers said their margins are significantly lower
- 37% said margins are slightly lower
- Only 17% reported no change, and just 8% said margins improved
Taken together, this means three out of four dealers have seen their profitability fall due to tariffs.
For businesses that rely on steady turnover and financing to cover costs, this decline is not trivial — it directly affects hiring, growth, and long-term viability.
Why It Matters
Tariffs are often debated in terms of geopolitics and manufacturing policy, but this survey underscores their on-the-ground effects:
- Consumers pay more at the dealership.
- Dealers lose trust as they struggle to justify price hikes.
- Profits shrink, straining businesses already navigating tight margins.
- And perhaps most importantly, the very people tariffs are supposed to protect overwhelmingly oppose them.
As the policy debate continues, one thing is clear: tariffs are not just a Washington issue. They are reshaping the economics of the car lot, one sale at a time.
