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✅ Key idea:
Key takeaways
- More than a third of car buyers said the tariffs prompted them to change their purchasing plans, with the vast majority saying they bought sooner than they planned, according to a survey.
- The tariffs have had a limited impact on car prices so far because automakers have borne the costs.
- The survey highlighted the long-term effects of tariffs on the economy.
The tariffs influenced the purchasing decisions of more than a third of car buyers this year, showing the far-reaching effects of President Donald Trump’s sweeping import taxes.
That’s according to market research firm JD Power, which found that 36% of buyers considered tariffs when purchasing a new car this year, and that 87% of those bought sooner than they planned as a result. Buyers of cars made in Europe and Japan were the most affected, according to the survey of 32,616 car buyers released on Wednesday.
The report also hinted at the impact of tariffs on prices, with 15% of respondents reporting that they paid more than they planned.
What does this mean for the economy
The survey shows how new import taxes have changed American consumer spending patterns. When the purchasing habits of the general population change, it can have far-reaching implications for the U.S. economy.
Car buyers rushed to make purchases this spring ahead of Trump’s auto tariffs, which took effect in May.
The tariffs have so far not led to consumer prices rising as much as expected, as automakers have avoided passing on costs to customers. But forecasters expect consumers will soon have to bear a share of the cost, which will hit hard, given that many of them are already struggling to afford a new car.
In August, Cox Auto predicted that vehicle prices would rise 4% to 8% as manufacturers raise prices on 2026 models.
The survey highlights the extent and breadth of import taxes, Trump’s signature trade policy, that have caused a shock to the economy. Economists say the tariffs have raised prices and reduced job creation in industries, among other effects.
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