THE TARIFFS ARE COMING

Tariffs on Japanese Cars Loom: What It Means for Nissan and Orlando Buyers

What We Know

(Japan's prime minister says he will push for US auto tariffs exemption | Euronews) Japanese officials are making last-minute appeals to the U.S. to exclude Japan from new auto tariffs, underscoring the high stakes for automakers on both sides of the Pacific (Japan's prime minister says he will push for US auto tariffs exemption | Euronews) (Japan's prime minister says he will push for US auto tariffs exemption | Euronews).

As of April 1, 2025, the United States is moving forward with a steep new import tax on foreign-made vehicles. The White House confirmed an additional 25% tariff on imported cars and auto parts, raising the total duty from the longstanding 2.5% to 27.5% for many vehicles (What New Auto Tariffs Mean for Nissan Buyers | Schomp Nissan Blog). This policy, initially proposed by President Trump, is set to take effect immediately. Starting this week, U.S. Customs will begin collecting a 25% tariff on auto imports, with fully imported cars taxed from midnight Thursday and tariffs on imported auto parts to follow (Japan's prime minister says he will push for US auto tariffs exemption | Euronews).

Japan—home to automakers like Nissan, Toyota, and Honda—has not secured an exemption from these tariffs (Japan's prime minister says he will push for US auto tariffs exemption | Euronews). In fact, Japan’s government has been making urgent diplomatic efforts to get relief. “Last-ditch” negotiations have been underway as Japanese leaders seek to exclude their country from the tariff hit list (Japan's prime minister says he will push for US auto tariffs exemption | Euronews). So far, however, the U.S. stance remains firm, meaning Japanese-branded vehicles built overseas will face the full brunt of the new import taxes. Automakers and analysts are bracing for the impact on a wide range of models. Some of Nissan’s most popular models sold in America are built abroad (in Japan or at overseas plants), and those will now incur the hefty tariff when entering U.S. ports. “We’ll effectively be charging a 25% tariff,” President Trump said of the measure (President Trump announces 25% tariffs on auto imports | AP News), stressing that he views it as a boost for U.S. manufacturing. Industry groups, however, warn this could squeeze automakers that depend on global supply chains (President Trump announces 25% tariffs on auto imports | AP News) – which includes nearly every Japanese manufacturer.

All major Japanese automakers make a portion of their U.S. inventory outside the States (Trump tariffs will only add to the pain for hard-hit Nissan | Reuters). For example, Nissan relies on imports for a significant share of its U.S. sales, including cars assembled in Japan and Mexico. Nissan’s top market is the U.S., and roughly 27% of Nissan’s U.S. sales volume comes from vehicles produced in Mexico (Trump tariffs will only add to the pain for hard-hit Nissan | Reuters) (such as the Sentra sedan and Kicks crossover). Those models target budget-conscious consumers and have slim margins (Trump tariffs will only add to the pain for hard-hit Nissan | Reuters). That means they’re precisely the kind of cars that will be hardest hit by a 25% tariff, since their buyers can least absorb a big price increase. Nissan, Toyota, and Honda each face similar challenges for various models, but analysts note Nissan is especially vulnerable because of its higher dependence on low-cost imported models (Trump tariffs will only add to the pain for hard-hit Nissan | Reuters) (Trump tariffs will only add to the pain for hard-hit Nissan | Reuters). In short, the new tariff policy is poised to raise costs for Japanese-brand cars just as it takes effect this month.

What We Can Surmise

With the policy now in motion, consumers and dealers are trying to anticipate the ripple effects. The most immediate likely outcome is higher vehicle prices. Import duties are usually passed on to some degree in the sticker price. A 25% tariff on a vehicle could translate to several thousands of dollars added per car. Industry analysts warn that slapping a 25% tariff on lower-priced cars will force price increases that might make some models unaffordable or even prompt automakers to pull them from the U.S. market (Why Trump's auto tariffs will hurt his working-class supporters | Reuters). “New vehicles across the board are going to be more expensive,” said Sam Fiorani, vice president of industry research firm AutoForecast Solutions (Why Trump's auto tariffs will hurt his working-class supporters | Reuters). He and other experts note that if new cars become pricier, many buyers will get pushed into the used-car market, which could drive up used vehicle prices as well (Why Trump's auto tariffs will hurt his working-class supporters | Reuters). In the words of one economist, “we’re looking at much higher vehicle prices” and potentially even “reduced choice” for consumers as a result of these tariffs (President Trump announces 25% tariffs on auto imports | AP News).

Dealership inventories and supply chains may also see disruption. Automakers anticipated the tariff and some rushed shipments of cars to the U.S. before the deadline (Car-carrying ships send added cargo to US ahead of looming tariffs | Reuters). Dealerships report that they currently have a normal supply of vehicles on their lots (around a 3-month supply nationwide) that were imported under the old rules (US car buyers rush to dealer lots to avoid tariff-related price hikes | Reuters). In the short term, that means cars already in the country can still be sold at pre-tariff prices. Nissan and other companies have indicated that vehicles already in transit or in dealer stock won’t see an immediate price jump (What New Auto Tariffs Mean for Nissan Buyers | Schomp Nissan Blog) (What New Auto Tariffs Mean for Nissan Buyers | Schomp Nissan Blog). However, as new shipments subject to the tariff arrive later in spring, inventory could tighten or costs could rise. Nissan has told dealers that it will be distributing updated allocation and pricing information in the coming weeks as the situation develops (What New Auto Tariffs Mean for Nissan Buyers | Schomp Nissan Blog). This suggests that by May and beyond, we may see significant price adjustments on new arrivals (What New Auto Tariffs Mean for Nissan Buyers | Schomp Nissan Blog). In practical terms, certain imported models might become scarce if automakers delay deliveries to re-route production, or they may simply come in with higher window stickers.

Changes in incentives and model lineup are possible. Car companies will have to decide how to handle the extra costs – whether to absorb some of it, or pass nearly all of it to consumers. For reasonably priced cars, manufacturers might not be able to add the full 25% to the consumer price without killing demand (Trump tariffs will only add to the pain for hard-hit Nissan | Reuters). They could choose to shoulder part of the tariff to keep prices somewhat palatable, but that would squeeze profit margins. This tension could mean fewer dealer incentives (rebates, discount financing, etc.) on affected models going forward, since there’s less room to cut price. On the other hand, dealers might try creative promotions in the very near term to clear out any remaining untaxed inventory. Industry observers compare the situation to the pandemic-era supply crunch: if new car supply shrinks or gets pricier, buyers may flock to used cars, which in turn pushes up used prices (Why Trump's auto tariffs will hurt his working-class supporters | Reuters). In the end, the tariff’s goal is to encourage more U.S. production, but that transition won’t happen overnight – so in the meantime, consumers are facing a market with higher prices and potential delays on certain models.

What Buyers Should Do

For car shoppers in Orlando and across Central Florida, the key is to stay ahead of these changes. If you’re in the market for a new vehicle – especially a Japanese-brand car like Nissan – acting sooner rather than later could save you money. Dealerships like Universal Nissan still have inventories of 2024 and early-2025 models that were imported before the tariff hit. Buying from this existing stock means you lock in the price without the new tariff surcharge. In fact, dealerships have noted that through April, prices remain relatively stable for vehicles already on the lot, but by May, new deliveries may reflect the tariff-driven increases (What New Auto Tariffs Mean for Nissan Buyers | Schomp Nissan Blog). The window for grabbing a new Nissan at a pre-tariff price is open now, but it may close quickly once current inventories turn over.

Sales consultants are advising customers to move up their buying timelines. If you’re seriously interested in an imported model, visiting the dealership in March or April could save you from future price hikes (What New Auto Tariffs Mean for Nissan Buyers | Schomp Nissan Blog). We’re already seeing this play out: some savvy buyers nationwide rushed to dealerships as soon as tariff plans were announced, hoping to avoid impending sticker shock (US car buyers rush to dealer lots to avoid tariff-related price hikes | Reuters) (US car buyers rush to dealer lots to avoid tariff-related price hikes | Reuters). Orlando-area shoppers can take a page from that playbook. Consider making your purchase now, in early spring, rather than waiting until summer. By acting now, you not only dodge the likely price increases, but you might also find a better selection before any popular models become scarce or more expensive.

It’s also wise to research where a vehicle is made. Not all Nissans will be equally affected. For example, a Nissan Rogue or Pathfinder built in a U.S. factory might not incur the full tariff, whereas a Nissan Sentra built in Mexico will (Trump tariffs will only add to the pain for hard-hit Nissan | Reuters) (Trump tariffs will only add to the pain for hard-hit Nissan | Reuters). Ask your sales consultant about the production origin of the model you want (What New Auto Tariffs Mean for Nissan Buyers | Schomp Nissan Blog). This can help you gauge how urgent your purchase decision should be. If the car is sourced overseas, you can bet the tariff is a factor in its future price. If it’s made domestically, there may be less immediate pressure (though keep in mind even U.S.-built cars use some foreign parts, which will also get costlier).

Finally, stay informed. The situation is evolving, and automakers like Nissan are expected to release updates as they navigate the new policy (What New Auto Tariffs Mean for Nissan Buyers | Schomp Nissan Blog). Keep in touch with your dealership – they’ll have the latest information on pricing, incoming inventory, and any manufacturer incentives that could help mitigate the impact. In Central Florida, Raul at Universal Nissan is tracking these developments closely. He and the Universal Nissan team are prepared to guide customers through the changing market and help find the best deals available before any tariff-induced price changes hit.

Bottom line: if you’re thinking about a new car, it’s a smart time to shop. This isn’t a high-pressure sales pitch, but a reflection of real-world conditions – prices on many imported models are very likely to go up in the near future (Why Trump's auto tariffs will hurt his working-class supporters | Reuters). By purchasing now at current rates, Orlando buyers can avoid the tariff premium and drive away with confidence. For personalized advice and to explore your options before prices shift, you can reach out to Raul at Universal Nissan. He can help ensure you get the vehicle you want at a price that isn’t inflated by international trade politics. In an uncertain time for the auto market, having a trusted local expert can make all the difference.