If you’ve been watching the headlines lately, you know that tariffs are once again shaking up the automotive industry.

A 90-day pause on implementing new tariffs for most countries has been announced, capping general import tariffs at 10%, while increasing tariffs on Chinese imports to 125%.

As policies evolve and new proposals loom, dealers are left wondering how potential price hikes, supply chain shifts, and consumer uncertainty could impact their bottom line.

The good news? You’re not alone. And there are smart, proactive ways to prepare.

Here’s a breakdown of what’s happening, what it could mean for your dealership, and what you should be doing right now to protect your margins and keep your customers informed.

How to Help Protect Your Dealership From Tariff Fallout

The Tariff Situation: a Quick Primer

In recent weeks, tariff talks have accelerated, particularly around vehicles and components imported from China. While nothing is finalized yet, there’s mounting concern that new or increased tariffs could target electric vehicles (EVs), batteries, semiconductors, and other automotive components critical to modern vehicle manufacturing.

According to the Car Dealership Guy Tariff Tracker, several OEMs are already assessing the potential impact. Some are even adjusting pricing or sourcing strategies in real-time. For dealers, this could mean anything from delayed inventory to higher wholesale costs, depending on which brands you carry and how reliant those brands are on Chinese-made components.

The Tariff Strategy Playbook from Cars Commerce offers a more tactical lens, outlining potential dealership responses from inventory rebalancing to communications planning.

Used Vehicle Prices Are Already Rising

While most of the tariff buzz has centered on new vehicles and EVs, used cars are feeling the ripple effects too.

The latest index data shows that used vehicle pricing is trending upward, due in part to limited inventory and rising consumer demand. If tariffs tighten new vehicle supply chains or push new car prices higher, we can expect even more pressure on the used car market.

For dealers, this could be a double-edged sword: it may create opportunities for stronger trade-in values and higher used vehicle margins, but it could also make sourcing quality used inventory more expensive and competitive.

What Auto Dealers Should Be Doing Right Now

While the situation is still evolving, there are clear steps you can take today to safeguard your business—and even find opportunities amid the uncertainty.

1. Use the Tariff Tracker to Stay Ahead

The Car Dealership Guy Tariff Tracker is a goldmine for dealers. It breaks down the potential tariff implications by automaker, helping you quickly identify whether your OEM partners are exposed to price hikes or supply risk. Use it to have informed conversations with your OEM reps and anticipate changes before they hit your floor.

2. Rethink Your Inventory Strategy

As outlined in the Cars Commerce Playbook, now’s a smart time to evaluate your model mix. If tariffs hit specific makes or categories (like EVs), demand may shift to less-affected models. Think about building a diverse inventory, including CPO vehicles and off-lease units, to stay flexible.

If you sell used vehicles, consider increasing acquisition efforts now, before prices climb further. The CarGurus Price Trends Tool can help you track changes by make and model in real time so you can prioritize high-demand vehicles with the best margin potential.

3. Communicate Clearly with Customers

Tariff-driven price increases can be jarring for buyers—especially those already skeptical about affordability. Be proactive in your customer communications. If you anticipate vehicle pricing or availability shifts, explain what’s happening and why. Emphasize current incentives, financing options, or limited-time pricing to drive urgency without sounding alarmist.

For EV intenders especially, transparency is key. If EV tariffs take hold, it could complicate already tricky buying decisions. Your team should be prepared to explain long-term cost of ownership, available tax credits, and alternative models if inventory becomes limited.

4. Monitor the Market Weekly

This isn’t a “set it and forget it” situation. Pricing and inventory trends will shift quickly if more tariffs are implemented. Assign someone on your team to monitor updates weekly, or even daily, using resources like the Tariff Tracker, CarGurus pricing data, and OEM bulletins. And use that data to adjust your advertising, pricing strategy, and messaging.

The Bottom Line: Prepare for What’s Next

Tariffs can create a whirlwind of uncertainty. But for well-prepared dealerships, they can also create opportunity. Staying informed, adjusting quickly, and leaning into transparency with your customers will set you apart in a market where many are reacting, not planning.

Whether or not additional tariffs take effect in the coming weeks, your ability to adapt will shape how well you weather the changes—and how confidently your customers trust you in uncertain times.

Struggling to monitor the market and build a resilient strategy? Connect with our experts. We’re here to help you navigate challenges like tariffs, inventory swings, and shifting buying behavior with data-backed insights and solutions.