A New 25% Tariff On All Foreign Made Cars

A recent tariff announcement by President Trump is expected to affect car sales in the Coachella Valley, and local dealerships are bracing for the consequences. This tariff will be applied to foreign-made automobiles, which could significantly raise the prices of both foreign cars and even those assembled in the U.S. due to their reliance on imported parts.

Reporter Brett Rosen interviewed Majed Mansour, the general manager of Palm Springs Nissan, who shared that in his 15 years in the business, he’s never witnessed a situation like this. Mansour highlighted the unexpected nature of the tariff, comparing it to past challenges like the chip shortage, but noting that this particular issue will have a broader impact.

According to Goldman Sachs, the new tariff could add anywhere from $5,000 to $15,000 to the cost of foreign-made cars, while U.S. assembled vehicles relying on imported parts might face price hikes of $3,000 to $8,000. For those considering buying a car in the near future, Mansour’s advice is clear: make a purchase sooner rather than later, as inventory currently in stock is tariff-free. Any vehicles arriving after the implementation of the tariff could be subject to significant price increases.

To mitigate the impact, Palm Springs Nissan has been in talks with their manufacturers, working on price adjustments for incoming vehicles. Despite the looming price hikes, Mansour remains optimistic, encouraging customers to act quickly if they’re in the market for a new car. He also mentioned that sales at the dealership have been higher than usual as customers hurry to lock in better prices before the new tariffs take effect.

Local car buyers in the Coachella Valley should be aware of the potential price increases and consider purchasing now to avoid paying the added costs once the tariffs start impacting new inventory. For more information tune into NBC Palm Springs.