DES MOINES, Iowa — Car dealerships, manufacturers and consumers alike are all bracing for the 25% auto tariff this week. 

This new tariff goes into effect Wednesday and could impact more than just new imported cars. There could also be a domino effect with high prices for used vehicles and auto insurance. 

Car dealerships and manufactures are waiting for more details of the tariff over the next few days and weeks before making decisions of their own, however, many car shoppers are wasting no time.

Willis Automotive in Des Moines has seen some of that this past week.

“Yeah, we’ve seen a flurry of activity with the announcement of the tariffs,” Willis Automotive CEO Jason Willis said. “We have had a few guests that have moved their purchase planning from later in the year, moved them up here to April and March to be able to get in before the tariffs hit. There’s a lot of people just waiting to see the pattern. We’re waiting to see with all of our manufacturers how they’re going to react to each of the different tariffs that, that come into play.”

The potential price increase could vary on where and how the car is made.

“Our Volvo brand is made in Sweden, but has plants right here in Charleston that build their cars right here,” Willis said. “So, how it’s going to affect the Volvo brand is unknown. The Chevrolet and the Cadillac brand, while they’re domestic, a lot of their cars and parts come from Mexico and Canada. So, we’re not quite sure how it’s going to affect those brands either. So again, it’s a lot of wait and see on how it’s going to affect it.”

Still, if a customer is able to buy now, it could potentially save them a lot of money. 

“Some of our cars are six figure and plus, and certainly a 25% tariff could have a large effect on those cars,” Willis said.

Any cars or auto parts that are already on U.S. soil are not affected by the tariff. So many dealerships have inventory to last a few weeks or months. 

“That really give us an opportunity to take care of our guests that are wanting the car now and still give us time to plan,” Willis said.

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