With the implementation of the tariffs on imported vehicles and auto parts, the automotive industry is experiencing significant shifts. While the tariffs present challenges, automakers are adapting to these changes in different ways by minimizing the impact on their customers. Herb Chambers dealerships will keep you informed on how the brands we carry respond to the new tariffs and what that means for you.
How Each Brand Is Responding to Tariffs
The following brands are all facing the challenges posed by the tariffs differently. Here's a breakdown of how each is adapting to the situation:
Audi
Audi has paused select U.S. shipments due to tariff-related uncertainties and is reassessing pricing strategies across its lineup. The brand is working to improve supply chain efficiencies to maintain competitive pricing on core models. Despite some potential price adjustments, Audi remains committed to delivering the luxury and performance customers expect, while also emphasizing EV development to align with shifting production priorities.
BMW
BMW is absorbing a portion of tariff-related costs and has expanded its domestic manufacturing footprint, especially for models like the X5 and 3 Series. The brand recently introduced flexible finance and lease programs to help mitigate the cost impact on customers. BMW is also leveraging production at its South Carolina plant to continue offering key models at competitive prices despite the changing trade landscape. A strong inventory of X3s, X7s, 4 Series, i4s, and iXs is currently available—making this an ideal time for shoppers to take advantage of these offerings before tariffs fully take effect.
Cadillac
Cadillac is optimizing its North American supply chain to minimize the impact of tariffs on vehicles like the Escalade and XT6. The brand has launched trade-in incentives and loyalty bonuses to help maintain customer affordability. Cadillac is also accelerating EV production at its Michigan facilities, reducing reliance on imported components.
Chevrolet
Chevrolet is scaling U.S. production of popular models such as the Silverado and Equinox to reduce tariff exposure. The company is offering APR discounts, loyalty rewards, and dealer cash on select models. Chevrolet's strategy also includes increasing inventory flexibility to ensure pricing remains consistent for buyers facing uncertain market conditions.
Chrysler
Chrysler is streamlining its domestic manufacturing efforts to maintain availability and control pricing on models like the Pacifica and 300. Special APR programs and bonus cash offers have been introduced on qualifying vehicles. By focusing on U.S.-based assembly, Chrysler is reducing dependency on imported parts while supporting consumer affordability.
Dodge
Dodge is boosting output at U.S. facilities for high-demand models like the Charger and Durango. Special rebates and seasonal financing offers are available to help offset increased production costs. Dodge is also investing in domestic part sourcing to ensure price stability across its performance lineup.
Ford
Ford has extended employee pricing to all customers through July 4, 2025, on eligible 2024 and 2025 models. This includes best-sellers like the F-150 and Escape. Ford continues to expand domestic manufacturing efforts and is emphasizing its hybrid and EV offerings, which are being built in U.S. plants to avoid tariff penalties.
Genesis
Genesis is mitigating tariff impact by sourcing more components domestically and maintaining consistent pricing across its lineup. The brand is offering interest rate reductions and extended warranty plans for models like the G80 and GV70. Genesis continues to prioritize build quality and value while navigating supply chain shifts.
Honda
Honda’s extensive North American manufacturing base has allowed it to maintain stable pricing on best-selling models like the Civic and CR-V. Special lease offers and low-APR financing remain in place. The brand is further ramping up U.S. production to limit exposure to increased import costs.
Hyundai
Hyundai has shifted production of the Tucson and Santa Fe to Alabama and is investing heavily in its Georgia EV plant. The company is also building a $21 billion steel plant in Louisiana, which will support long-term domestic production and reduce reliance on imported materials. Pricing is expected to remain steady through June 2, with incentives such as retail bonus cash and 0% APR available on select models. Hyundai has also built up inventory in anticipation of potential supply delays.
Infiniti
Infiniti is navigating modest price increases by ramping up production in North America and enhancing trade-in and loyalty offers. Flagship models like the QX60 remain competitively priced due to efforts to localize parts sourcing and simplify logistics. Infiniti remains focused on luxury value amid global pricing pressures.
Jaguar
Jaguar is facing minor supply disruptions but is absorbing a portion of tariff-related expenses to keep pricing stable on core models like the F-PACE and E-PACE. Special lease offers and loyalty incentives are available to retain brand competitiveness. Jaguar is also emphasizing electrification as part of its forward-looking production strategy.
Jeep
Jeep continues to prioritize domestic manufacturing for popular models like the Grand Cherokee and Wrangler. Tariff-related costs are being partially absorbed, and Jeep is offering rebates, APR discounts, and loyalty incentives to support customers. These measures help ensure affordability without sacrificing performance or capability.
Land Rover
Land Rover is navigating tariffs by modifying its global supply chain and logistics strategy. The brand has rolled out APR financing and lease loyalty programs for key models like the Defender and Discovery. While some pricing fluctuations may occur, Land Rover is committed to maintaining luxury value and timely delivery.
Lincoln
Lincoln has expanded production at its U.S. facilities for models like the Navigator and Aviator. In response to tariffs, the brand is emphasizing loyalty rewards, low APR options, and bundled service plans to enhance long-term value. Lincoln continues to invest in domestic production to limit cost increases.
MINI
MINI is responding to the tariffs by maintaining a price protection policy for vehicles built through June 30, 2025, helping stabilize costs for customers and dealers amid market uncertainty. The brand is offering competitive lease and finance incentives and is working within the BMW Group to explore domestic production and restructured supply chain solutions that could help reduce long-term reliance on imported parts and vehicles. For MINI, we have a strong inventory of Countryman and 2 Door Hardtops.
Mercedes-Benz
Mercedes-Benz is holding prices steady on many 2025 models by absorbing tariff costs and optimizing logistics. The brand continues to provide enhanced financing options, extended warranties, and flexible lease terms. U.S. assembly for models like the GLE and GLS is helping shield customers from full tariff exposure.
Ram
Ram is expanding North American manufacturing capacity and emphasizing availability of core models like the Ram 1500. Tariff-related costs are being managed with incentives, including bonus cash and rate buy-downs. Ram’s domestic assembly strategy remains key to delivering value to truck buyers.
Toyota
Toyota’s strong U.S. production network, including plants in Kentucky and Texas, is helping the brand avoid most tariff penalties. The Camry, RAV4, and Tacoma are among the models benefiting from domestic assembly. Toyota is offering finance and lease deals across its lineup to maintain affordability.
Volvo
Volvo is navigating the tariffs by increasing domestic production at its Charleston, South Carolina plant, which currently builds the EX90 and may expand to models like the XC60 or XC90. This shift reduces reliance on imports and minimizes tariff exposure. The brand is offering loyalty incentives and financing offers, such as 4.99% APR for up to 72 months on select models, while optimizing shipping logistics to maintain value and ensure timely deliveries.
How Herb Chambers Is Supporting You
The impact of tariffs on the auto industry may seem daunting, but Herb Chambers is committed to keeping you informed and supported. Whether you’re looking for a new or pre-owned vehicle, our team is here to not just sell you a car, but help you buy one.
Note: The information provided is based on the latest available data as of May 13, 2025.
Sources:
- “U.S. Tariffs on Cars: What You Need to Know.” NPR, 5 Apr. 2025, https://www.npr.org/2025/04/05/tariff-auto-industry.
- “How Tariffs Are Impacting Car Prices and Production.” The Verge, 2 Apr. 2025, https://www.theverge.com/2025/04/02/tariffs-auto-production-price-changes.
- “Understanding the Impact of U.S. Auto Tariffs.” The Washington Post, 4 Apr. 2025, https://www.washingtonpost.com/2025/04/04/us-tariffs-auto-industry-impact.
- CBS News. “Ford Promo Employee Discount Trump Tariffs Car Prices.” CBS News, 3 Apr. 2025, https://www.cbsnews.com/news/ford-promo-employee-discount-trump-tariffs-car-prices.
- AP News. “Jaguar Land Rover Pauses U.S. Shipments Amid Tariff Concerns.” AP News, 3 Apr. 2025, https://apnews.com/article/ad5d4cfdca70975ab357e2cb5a8d698c.
- NY Post. “Ford Rolls Out Discounts and Mercedes Eyeing U.S. Production Increase as Trump’s Tariffs Rev Up.” New York Post, 3 Apr. 2025, https://nypost.com/2025/04/03/business/ford-rolls-out-discounts-and-volvo-mercedes-eye-upping-us-production-as-trumps-auto-tariffs-rev-up.
- “Mercedes-Benz Won’t Raise Prices on 2025 Models Despite Tariffs.” CBT News, 5 Apr. 2025, https://www.cbtnews.com/mercedes-benz-wont-raise-prices-2025-models/.
- "How Automakers Are Adjusting to Tariffs and Keeping Prices Competitive." Automotive News, 4 Apr. 2025, https://www.autonews.com/article/20250404/14/5500/how-automakers-are-adjusting-to-tariffs.
- "Volvo’s Response to Tariffs and Production Adjustments." Volvo Car News, 4 Apr. 2025, https://www.volvocars.com/volvo-response-tariffs-2025.