Car prices have soared since the end of the COVID-19 lockdowns, as demand rebounded and dealerships hiked prices. Now, instead of relief, drivers face an increased financial blow as President Donald Trump’s proposed tariffs could drive up the price of imported vehicles by as much as $12,000 per car. The financial spike won’t stop at automakers, and it’s poised to hit consumers hardest, threatening to stall car sales nationwide.

To understand how Americans are reacting, we surveyed 1,000 drivers, asking: Are they holding off on new purchases? Are they hanging on to aging vehicles longer? Or do they see this as just another bump in the road?

Key Findings

On Cost:

  • 73% are worried about how tariffs will affect vehicle prices. 
  • 62% expect a significant increase in car prices. 
  • 46% are ready to boycott companies and vehicles to protest tariffs.
  • 94% of Americans won’t switch to a Tesla to escape tariff hikes
  • 81% of Gen Z believe their spending choices won’t influence tariff or trade policy, making them the most disillusioned generation.

On Policy:

  • 40% of Americans say they have no confidence that federal trade policy will protect everyday people. 
  • Over half (57%) believe the government’s tariff push is politically motivated rather than economically justified.

On Purchasing:

  • It’s personal: nearly 2 in 5 Americans can’t afford any increase in vehicle ownership costs.
  • Nearly half of Americans (47%) plan to buy a car within the next 12 months, but tariffs are shaking their plans. 
  • Among those still hoping to buy this year, 81% are concerned tariffs will inflate the true cost of car ownership, not just the sticker price.
  • A quarter of consumers plan to delay their car purchases to avoid added costs.

Gen Z Poised To Be Primary Car Buyers in 2025

Younger Americans are driving demand, but purchase plans vary sharply across generations. 47% of U.S. adults plan to buy a car within the next year, even as prices climb. For many, driving isn’t a luxury. It’s a lifeline: 78% of Americans commute by car, while just 9% rely on other modes of transport, and 14% work from home.

While older Americans are easing out of the daily commute, younger generations are scrambling to secure reliable transportation, and a looming tariff hike may send their costs soaring.

Tariff Anxiety Spikes, Even for the Savvy

The full impact of tariffs is still undetermined, however, a 25% auto and parts tariff remains in place. 81% are worried about rising costs tied to auto tariffs, while 19% remain concerned. Prices are expected to increase while inventory at dealerships decreases.

Tariffs are rattling Americans across the board. Nearly 80% of those earning under $50,000 are worried — and even more high earners, 83% of those making over $150,000, share their concern. Income doesn’t shield anyone from tariff anxiety.

Americans Brace for Price Hikes as Tariff Fear Surges

Tariffs may technically target imports, but Americans aren’t fooled. 9 in 10 expect car prices to rise — and 62% fear “significantly”, with another 31% predicting moderate increases.

Most U.S.-made cars still rely on imported parts, which means even domestic models won’t escape the impact; their concern is justified.

The cost creep doesn’t stop at the sale — maintenance and repairs are likely to get more expensive, too. 

Tariff Literacy Is High, But Misconceptions Still Linger

Tariffs have dominated recent headlines, forcing Americans to brush up on their knowledge quickly.

  • 58% say they understood tariffs before Trump’s policies.
  • 25% gained a basic understanding from Trump-era news.
  • 11% learned about tariffs for the first time under Trump.
  • 7% still don’t understand them.

Half of Drivers Refuse To Pay Extra

When faced with new tariffs on imported vehicles, half of Americans say they’d switch to domestic models, and 41% say they’d pay up to $2,000 more. And that’s far below the estimated $12,000 price hike manufacturers may hand to consumers.

Generational resistance to added costs is sharp. 54% of baby boomers and Gen Xers won’t pay $1 more for an imported vehicle. Only 40% of millennials and 46% of Gen Zers draw the same hard line.

Tariffs threaten to widen the financial divide in car ownership. While 69% of high-income earners would pay over $1,000 more for an import, just 39% of low-income Americans say the same.

  • 69% of Americans earning $150,000 or more;
  • 64% earning $100,000-$149,000;
  • 51% earning $50,000-$99,000;
  • Just 39% earning under $50,000.

Tariffs hit low-income drivers the hardest. For them, tariffs aren’t a tax; they’re a tipping point.

American Can’t Afford Higher Car Costs

One in three Americans (36%) says they can’t afford any increase in vehicle ownership, and many more are barely able to stretch their budgets:

  • 38% could handle only $50-$100 more per month.
  • 19% could absorb $250-$500 more.
  • Just 7% could manage an increase of $500 or more.

Among low-income earners, 54% say even a small increase would break their budget; just 6% of high earners ($150,000+) say the same.

Will tariffs widen financial inequality, one vehicle payment at a time?

Used Cars and Delayed Deals: The Most Likely Escape Routes

Tariffs are pushing 53% of Americans to hold off on buying a car for the foreseeable future.

  • 17% will shop used instead of new.
  • 8% will need a cheaper model or brand.
  • 12% will switch to a domestic brand.
  • 29% aren’t planning to buy a car anytime soon.
  • Only 11% won’t change their car-buying plans.

Over 1 in 3 Gen Zers (37%) say they’ll buy used cars, far outpacing other generations. 21% of millennials, 17% of Gen Xers, and just 11% of baby boomers say they’ll do their shopping at used car lots.

If tariffs take hold of prices, here’s what car shoppers across the U.S. plan to do:

  • 37% would buy an American-made car.
  • 25% would downgrade to a cheaper model or brand.
  • 22% would seek long-term savings through more efficient brands.
  • 21% would prioritize quality.
  • 16% would still buy imports, even with higher prices.
  • 6% would switch to an electric vehicle (EV) like Tesla or Rivian.

Once again, Gen Z breaks from older generations, proving to be more flexible and price-sensitive. Nearly 1 in 3 Gen Zers would prioritize low-cost car brands — a sharp contrast to just 19% of baby boomers. And when it comes to innovation, Gen Z is nearly five times more likely to consider switching to an EV at 14% versus just 3%.

Drivers Trim Spending, but Refuse To Ditch the Keys

Despite growing concern, 48% of Americans haven’t adjusted their spending yet. Still, over half (52%) are making early moves to soften the blow of potential price hikes. 

Here’s how they’re preparing:

  • 32% have cut back on nonessentials like eating out, entertainment, clothing, and travel.
  • 11% are delaying appliance or electronics purchases.
  • 10% have paused home or vehicle improvements.

Even as inflation and tariff threats force households to tighten their budgets, car ownership remains sacred. Among those already cutting expenses, 83% said they’d slash spending elsewhere before skipping a major repair or delaying a vehicle purchase. For most Americans, driving isn’t optional — it’s non-negotiable.

And when asked what they’re buying in anticipation of tariff hikes? 60% aren’t buying anything at all. Those who are spending are focused on the basics — food, cleaning products, auto parts, and fuel — mirroring the bare-bones priorities seen at the start of the COVID-19 pandemic.

  • 16% are stocking up on pantry staples and food.
  • 12% are purchasing household basics like cleaning products and toilet paper.
  • 7% are buying tools, auto parts, or fuel.
  • 5% are picking up extra clothes, shoes, or electronics.

Voters Smell Politics: More Than Half Say Tariffs Are a Campaign Tool

A staggering 57% of Americans don’t feel confident in President Trump’s approach to tariffs. Only 17% reject this view, while 26% remain undecided, revealing a deeply conflicted nation over the true purpose behind these trade policies.

Beyond the political divide, skepticism toward tariffs runs deep. 

More than half of Americans (54%) feel import taxes perpetuate rising costs for consumers and strained relationships with global trade partners. Even among the 46% who support tariffs for boosting U.S. jobs and businesses, many acknowledge the painful tradeoffs, including price hikes and potential economic fallout.

Some still see value in tariffs:

  • 28% believe they help protect U.S. jobs.
  • 28% think tariffs encourage buying American-made goods.
  • 26% feel they reduce dependence on other countries.
  • 9% say they increase U.S. leverage in trade negotiations.
  • 9% hope they help the economy grow.

But these upsides are overshadowed by broader concerns:

  • 53% say tariffs drive up consumer prices.
  • 36% warn of trade wars and damaged foreign relations.
  • 7% highlight the strain on small businesses.
  • 4% argue tariffs stifle innovation needed for global competition.

When Americans weigh potential benefits against real-world costs, overall sentiment remains conflicted:

  • 29% say Trump’s tariffs are worth the short-term pain.
  • 40% call them political theater that hurts consumers.
  • 32% are either uncertain or distrust both sides of the debate.

Who Gets Hurt by Auto Tariffs? 3 in 4 Point To “Everyday Drivers”

Nearly 3 in 4 Americans (72%) fear that auto tariffs will hit drivers the hardest. But the concern goes well beyond personal costs as Americans foresee a domino effect across the entire auto sector.

Besides them, here’s who they think will feel the burden:

  • Automakers: 42%;
  • Industry workers: 39%;
  • Local dealerships: 39%;
  • Parts manufacturers: 32%;
  • Import/export businesses: 27%;
  • Politicians and trade lobbyists: 7%.

If rising prices force buyers to rethink their next vehicle purchase, the shift could rattle the industry, slash sales, and eventually lead to layoffs. The looming economic fallout is alarming, but for many Americans, the concern is more immediate.

73% feel hope dwindling about affording car ownership at all. That anxiety cuts across every demographic, though it’s slightly more pronounced for financially unstable Gen Zers (75% versus about 70% for all other generations). Even income makes no difference: tariff stress is felt across the financial spectrum.

Americans Are Poised for a Vehicle Boycott

46% of Americans are ready to boycott vehicles hit by tariffs — either independently (23%) or if a broader movement gained momentum (24%)

Skepticism remains. A majority (54%) don’t believe boycotts are effective and wouldn’t change their shopping habits, even as prices rise.

Still, protest takes many forms. 55% believe delaying purchases, switching brands, or choosing alternatives can still send a powerful message — a signal that while not everyone will join a boycott, many are looking for ways to push back with their wallets.

But beneath that majority lies a generational rift over whether consumer behavior can truly shift policy. When it comes to influencing policy with their wallets, Americans just don’t believe it works:

  • A staggering 81% of Gen Z say their purchases won’t sway the government at all. They’re the most disillusioned group by far.
  • Nearly 7 in 10 baby boomers agree that consumer pushback won’t make a difference, despite being the most vocal about policy issues.
  • Gen X echoes that skepticism: 31% believe consumer behavior has power, while 69% say it’s unlikely to shift policy.
  • Millennials are the most optimistic — 33% believe their actions could influence tariff outcomes, though 67% remain doubtful.

The bottom line is clear. Most Americans have lost confidence that spending habits can shift political outcomes.

Americans Don’t Trust D.C. on Trade

2 in 5 Americans (40%) have zero confidence in the government’s ability to create trade policies that benefit everyday people. Only 1 in 5 say they trust Washington at all.

Generational trends reveal that the older Americans get, the more disillusioned they become with the government’s trade leadership.

  • 48% of baby boomers say they have no confidence in federal trade policy.
  • 39% of Gen Xers feel the same.
  • 33% of millennials echo this skepticism.
  • Only 28% of Gen Z express the same discontent. 

So, as economists warn that tariffs will push vehicle ownership costs higher, Americans largely agree: drivers will take the hardest hit. While the damage feels inevitable, many are looking for ways to take the sting out of auto tariffs, from delaying big-ticket purchases to seeking out used or domestically made vehicles.

Methodology

We surveyed 1,000 American drivers across regions, ages, and income levels to better understand their auto buying plans, tariff awareness, and consumer adaptations. The study covers both perceptions and behaviors, allowing us to compare and contrast Americans’ opinions of tariffs with their actual impact on auto ownership.

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