Your Dream Car Is Probably Going To Get Way More Expensive If Tariffs Go Forward, But There’s Good News

Yesterday, March 26, President Donald Trump announced sweeping tariffs on car imports and imported car parts. The tariff calls for 25 percent tariffs to be applied to “all imports” of vehicles as specified by the order, to be applied on April 3. Some parts will also see a 25 percent tariff. While the biggest immediate impact will be on new vehicles and parts, a huge question mark remains about used cars. What’s going to happen with your beloved over 25-year-old dream car in Japan or Europe? If the tariffs go ahead as written, your dream imported classic car might now be even more unattainable.

Alarm bells went off in the car importation world yesterday after the White House published “ADJUSTING IMPORTS OF AUTOMOBILES AND AUTOMOBILE PARTS INTO THE UNITED STATES” to its Presidential Actions page. President Trump has been talking about his desires for several kinds of tariffs, including car tariffs, for a while. Tariffs have been such a huge part about the President’s political identity that there’s a whole Wikipedia page dedicated to the tariffs from Trump’s first term.

It’s not that surprising to see this new round of tariffs. A lot of folks in the car importation world, myself included, are still buying cars knowing that the tariffs might happen. But now that they are here, there are still questions that, thus far, nobody seems to be able to answer with any real clarity. The biggest question in the car import world right now is: How will this impact importing used cars?

The Tariffs

This question comes because of the wording of the Proclamation. In it, President Trump says:

On February 17, 2019, the Secretary of Commerce (Secretary) transmitted to me a report on his investigation into the effects of imports of passenger vehicles (sedans, sport utility vehicles, crossover utility vehicles, minivans, and cargo vans) and light trucks (collectively, automobiles) and certain automobile parts (engines and engine parts, transmissions and powertrain parts, and electrical components) (collectively, automobile parts) on the national security of the United States under section 232 of the Trade Expansion Act of 1962, as amended (19 U.S.C. 1862) (section 232). Based on the facts considered in that investigation, the Secretary found and advised me of his opinion that automobiles and certain automobile parts are being imported into the United States in such quantities and under such circumstances as to threaten to impair the national security of the United States.

The document then meanders through explanations about trade negotiations, national security, and the COVID-19 pandemic. If you’re looking at that sweet over-25-year-old car in Japan or Europe, the part that matters most to you happens next, emphasis mine:

Except as otherwise provided in this proclamation, all imports of articles specified in Annex I to this proclamation or in any subsequent annex to this proclamation, as set out in a subsequent notice in the Federal Register, shall be subject to a 25 percent tariff with respect to goods entered for consumption or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on April 3, 2025, for automobiles, and on the date specified in the Federal Register for automobile parts, but no later than May 3, 2025, and shall continue in effect, unless such actions are expressly reduced, modified, or terminated. The above ad valorem tariff is in addition to any other duties, fees, exactions, and charges applicable to such imported automobiles and certain automobile parts articles.

Shortly after this announcement, the JDM car importing community erupted into a bit of a panic. Japanese Nostalgic Car, a publication dedicated to the JDM community, warns, “Get your JDM dream car now, because a 25 percent tariff is coming.” Car and Driver sounded a horn a week ago, saying, “U.S. Tariffs Might Make JDM Imports More Expensive.” Some importers are even announcing the bad news, with Vistec R Imports publishing its own announcement last night.

But there was also plenty of confusion. The White House also published a Fact Sheet about the new tariffs, and it says:

The 25% tariff will be applied to imported passenger vehicles (sedans, SUVs, crossovers, minivans, cargo vans) and light trucks, as well as key automobile parts (engines, transmissions, powertrain parts, and electrical components), with processes to expand tariffs on additional parts if necessary.

While the main proclamation says “all imports,” neither document distinguishes between new and used vehicles. Based on my reading of the proclamation, the “all imports” bit suggests that it’s a sweeping tariff that will be applied to all imported vehicles, not just new ones.

Last night, I reached out to a few of my import, export, and broker contacts. All of them were pretty frank, telling me that the only information that they have is the same two documents that I’m looking at here, and their interpretations are the same as my own. If the tariff goes ahead as written, it should mean duties to be imposed on all imported cars, not just new ones.

I also spoke with my wife, who is an attorney with over a decade of litigation experience. Her interpretation of the documents agrees with mine.

Still, nobody really knows the exact specifics for sure, but the assumption is that, yes, your dream car is about to get about 25 percent more expensive. That said, President Trump may even change these tariffs, too, so it’s hard to say anything definitive until the tariffs start happening. My importer contacts weren’t willing to give out any statement on the record for this reason.

What This Means For Enthusiasts

If the tariffs go live as expected and hit used car imports, here’s what the tariffs would mean for you.

As of right now, a classic car that you import from Japan is already subject to import duties. Something like the 1997 Honda Life that I bought would normally be subjected to just a 2.5 percent import duty. Imported trucks, like an adorable Kei truck or something bigger like an Isuzu Elf, get hit with a 25 percent import duty thanks to the infamous Chicken Tax.

Here’s the kicker: If the new tariffs go live on April 3, they will not replace existing duties but add to them. So now the typical vintage car import will now cost you 27.5 percent while trucks are levied 50 percent.

If your chosen ride is a Kei vehicle, the duty won’t amount to much. I paid $258 for my Honda Life. Normally, this car would cost me just $6.45 in import duties. Now, the duty will amount to $70.95. That’s not much dough at all.

It’s not even that bad for Kei trucks, either. Say you buy a nice Kei truck for $1,000 in the auction system. Your import duty will be $500. That’s not great, but also just $250 more than what you were going to pay before.

Sadly, the real kick happens when you add all of your costs up. In 2021, I was able to load two Kei cars onto RoRo ships for about $900 each. My new-to-me 1997 Honda Life will cost around $1,700 to ship today, or nearly double. So, if you’re like me and got into the importing game within the past few years, you’re probably not stoked to be paying more for shipping and now to pay even more in import duties.

So, the good news here is that if you’re importing a Kei car, you’re usually talking about increases of small sums of money. My Honda Life should still cost me around $3,500 before I load it onto a trailer and haul it home. That shouldn’t break the bank!

Some prominent U.S.-based dealers are known to list their JDM cars for a price that is roughly double of that of what it would cost you to import equivalent cars yourself. Even if these dealers increased their prices by 25 percent to cover the tariff, Kei trucks and cars should still remain cheap.

What won’t be cheap are the JDM legends. I’m talking about the Honda NSXs, Nissan Skylines, and Mitsubishi Lancer Evolutions. The values of these cars have already skyrocketed, pricing several enthusiasts out. But now, these cars could get so expensive that they’re unattainable for everyone but the rich enthusiast.

I’ll use the Honda NSX for an example. Here’s a 1991 NSX with 69,982 miles that I chose at random on the Goonet Exchange. It costs ¥8,112,100 or $53,774. That’s the price the seller says will get the car loaded onto a boat and headed to the United States.

The closest comparable I found is a 1991 Acura NSX with 65,000 miles that sold on Bring A Trailer in November for $66,000.

To calculate your new import duty, you’ll need to take your vehicle’s value and times that by 0.275. That covers the existing 2.5 percent duty plus the 25 percent tariff. Now, Goonet packages shipping into your purchase price. For this example, let’s say your purchase price is a nice and even $50,000. Your import duty is $13,750, bringing your price to $63,750. Now, throw on the price of shipping it to an American port, and you’re already at the price of an equivalent Acura NSX before you load it into a trailer. At that point, you might as well just buy the American NSX and save yourself the hassle.

Of course, if your chosen JDM car doesn’t have an American equivalent, you’re left either paying the 25 percent duty or hoping a dealer in the States has one for a decent price. It’ll be even worse if you’re importing a car from Europe, where you already have to deal with an unfavorable exchange rate on top of higher shipping prices before you then might get hit by the tariff.

In short, if you’re buying cheap cars in Japan or elsewhere and the tariff hits used cars, your car would get a little more expensive. If you’re buying high-dollar cars or are running an import dealership, your costs might take a huge spike, and that could happen almost overnight. One importer in a group chat I’m in says he has 20 cars at a port in Japan right now and wasn’t expecting the tariffs. There’s no way those cars could make it to America in time, so he’s hoping used cars will be exempt.

Sadly, as of publishing, it’s still not really known for sure what will happen. But if the tariffs go live as written, it’s safe to assume that your favorite imported car will get 25 percent more expensive. That’s a darn shame and it makes me sad to think of how many enthusiasts will now be priced out of their dream cars.