Half of Car Shoppers Swayed by Tariffs

The impact of tariffs on the automotive sector has led to elevated prices and uncertainty around supply chains and other factors. The stated goal of many of the tariffs is to spur more manufacturing in the United States. When it comes to autos, that goal would be for both domestic and foreign brands that sell cars in the 50 states to build them here. As implemented, the tariffs theoretically would lead brands that build in the U.S. to charge less for their vehicles with less impact from tariffs. According to over 1,300 shoppers CDK recently surveyed, the tariffs are making many reconsider domestic brands.

When asked if they’d be more likely to buy an American brand due to tariffs over half (54%) agreed. Another 29% were neutral while 17% said it wouldn’t influence them to buy American. 

The number was significantly higher for plug-in hybrid and EV buyers when broken down by the type of car they were shopping for. 

Why Auto Tariffs Are Driving Shoppers Toward American Brands

Here are some comments from respondents who said they’d be swayed to buy American:

“My current vehicle is made by an American brand. The recent tariffs imply foreign vehicles would be more expensive and I would prioritize American vehicles made by top brands like Ford and Chevrolet.”

“It [tariffs] made me stop buying products overseas because of the price.” 

“I am worried that long-term maintenance will be higher for non-American brands. I would prefer a Honda or Toyota, but I think prices for maintenance are going to be higher because imported brands will have to accommodate for their losses.”

“I am hoping to help the American economy.”

Why Some Car Shoppers Prefer Foreign Brands

Only 17% said tariffs wouldn’t drive them to consider American brands. When asked why, their comments focused on perceived quality and the uncertainty of the tariffs continuing: 

“I'm trying not to get too concerned about tariffs because it changes from day to day. I will find the best deal for a vehicle that I like.”

“The foreign car brands last longer. The parts on American made cars are still foreign. So I would only really save money on the car itself if I went with American made. But it won't last as long either.”

“American products are poorly made and always break down and keep getting recalls ... foreign-made products are better made because the manufacturers take their time making sure that their products are safe for the consumer.”

“Because American brands are not built very well.”

“Although tariffs will increase the price of overseas brands I refuse to be dictated to as to which brand I purchase. Trying to force me into buying a specific product is more likely to encourage me to buy a different one.”

No matter the motivation, it’s fascinating to see the impact tariffs have had on car shoppers brand consideration.