This article was updated on December 12, 2025. The situation may continue to evolve – please check out the most up-to-date information via Automotive News.

The Auto Industry is Feeling the Tariff Shifts

On April 2, 2025, the United States officially implemented a 25% tariff on imported vehicles and key automotive parts from outside the U.S. Since that occurred six months ago, there have been numerous shifts and changes based on auto industry feedback. This is where we stand today…

The White House has taken a decisive step in reshaping U.S. trade policy for the auto sector. On October 17, 2025, President Trump issued a new Section 232 proclamation imposing:

• 25% tariffs on imported medium‑ and heavy‑duty vehicles (MHDVs) and key vehicle parts (MHDVPs)
• 10% tariffs on buses, effective November 1, 2025

This action follows the Commerce Department’s determination that high import penetration in the U.S. truck and bus markets threatens national security and domestic manufacturing resilience. Imports now account for roughly 43% of all MHDVs sold in the U.S., including 50% of Class 8 trucks—the heaviest‑duty category.

To offset the burden on domestic manufacturers, the proclamation includes import‑adjustment offsets for U.S.‑assembled vehicles and engines. Manufacturers that complete final assembly in the United States can receive a credit equal to 3.75% of total production value, which can be used to offset certain tariff liabilities through October 2030.

What This Means for the Broader Auto Industry

While this proclamation primarily targets commercial vehicles and heavy‑duty manufacturing, its ripple effects extend through the entire automotive supply chain—especially parts suppliers, logistics providers, and dealerships.

In the last few months, dealers reported a decline in sales, with many noting that customers seemed to purchase vehicles before the tariffs took effect and affected prices. This conclusion was drawn from the Cox Automotive Q4 2025 Dealer Sentiment Index survey, which also noted that many feel more optimistic about future months.

Domestic producers may benefit from increased demand for U.S.‑made components but import‑reliant suppliers and dealers can expect price fluctuations and shipping delays as the new tariff rates take effect. Even dealerships that don’t sell trucks or buses will feel the pressure in service departments and parts procurement, where costs on shared materials like steel, aluminum and electronic components are likely to rise.

In parallel, the administration is also considering additional tariff relief for U.S.‑based auto production—a move advocated by Senator Bernie Moreno (R‑OH) that could expand existing offsets for companies with final assembly or engine production in the U.S.

“The signal to the car companies around the world is, ‘If you build in the U.S., we’re going to reward you,’” Moreno told Reuters.

The Dealership Cost Equation to Address Tariffs

For dealerships, the immediate challenge remains cost management. 

Even with policy shifts that may benefit U.S. automakers, the parts pipeline remains vulnerable—and the downstream costs of manufacturing disruptions often fall to retailers.

Dealers are already grappling with:

• Rising service‑bay supply costs (chemicals, filters and electronics)
• Lengthening fulfillment times for imported components
• Suppliers using tariffs as justification for across‑the‑board price increases (“tariff greed”)

In this environment, dealerships can’t control global trade policy—but they can control their operational costs.

How Dealerships Can Protect Their Bottom Line

With rising costs and market uncertainty, dealerships must focus on controlling expenses wherever possible. While tariffs are out of your control, managing operational costs is not.

• Streamline Procurement: Work with a Group Purchasing Organization (GPO) like Dealer One Stop to lock in pre-negotiated rates on essential dealership supplies, helping offset price increases.
• Optimize Inventory Management: Avoid overpaying for parts and supplies by leveraging vendor-managed inventory programs to reduce waste and streamline procurement.
• Cut Unnecessary Costs: From technology to office supplies, small savings across multiple categories can add up and help dealerships maintain profitability.

How Partnering with a Group Purchasing Organization Reduces Costs

Even with the newest auto industry tariffs driving up the cost of essential goods for dealerships, Dealer One Stop continues to protect its members from rising expenses through the power of collective buying.

As the largest automotive GPO in the country, Dealer One Stop leverages the purchasing volume of thousands of dealerships nationwide to negotiate pricing that individual stores simply can’t access on their own.

Instead of absorbing tariff-related increases on everyday essentials like shop supplies, uniforms, office products, janitorial items, and breakroom supplies, Dealer One Stop members enjoy consistent, reduced pricing and reliable supply, month after month.

Dealer One Stop works closely with trusted vendors and manufacturers to secure stable contracts and long-term pricing structures that help shield members from market volatility and push back against those who use price gouging or “greed tariff” tactics.

In an environment where every cost increase chips away at your margins, Dealer One Stop ensures your purchasing stays efficient, predictable and profitable so your dealership can stay focused on growth, not rising costs.

Join Dealer One Stop for Free

As the auto industry faces uncertainty, controlling operational costs is more critical than ever. FLADCO and Dealer One Stop help dealerships navigate rising expenses by providing access to pre-negotiated pricing on essential supplies—from auto shop tools and chemicals to office supplies, technology, and breakroom essentials.

The bottom line: Dealerships can’t control global trade policy—but they can control who they partner with.

Explore the difference we can make toward your bottom line with our Cost Savings Calculator. We can show how you can save in key categories like ink & toner, janitorial supplies, office products, uniforms, credit card processing and more!

This article was originally published on the Dealer One Stop website – to view the original blog, please visit this webpage.