'Tariff free' cars are being advertised at dealerships. But for how long?

You don’t need to look hard to find out how car dealers are responding to tariffs — they're advertising their approach in commercials, ads, and dealer websites. One method gaining popularity is car dealerships promoting tariff-free cars to buyers as a sales tactic in the competitive new car sales landscape. President Trump’s 25% tariffs on auto imports, which started on April 3, have put foreign automakers on the back foot. Analysts see prices jumping as much as $3,000 for cheaper cars and up to $20,000 for luxury autos, and dealers know even the smallest price hike is bad news for sales. Taking the tariff heat off is one way to go. And the dealers have different tactics within this playbook. “No Added Tariffs. 100% Tariff Free,” says the banner on the website of Mercedes-Benz (MBG.DE) of Calabasas in Southern California. Mercedes has said it will cover the costs of tariffs for model year 2025 cars, and it likely has enough inventory in hand that was imported before the tariffs to keep that promise. Read more: What Trump's tariffs mean for the economy and your wallet The Mercedes-Benz of Calabasas website (4/17/25) · Mercedes-Benz of Calabasas Infiniti of Englewood in New Jersey posted on its site, “Invest in an Infiniti without new tariffs,” likely pointing buyers to cars that were imported earlier and the all-new QX60 SUV, which is made in the US. And Porsche (P911.DE) of Tyson’s Corner in the Virginia suburbs of Washington, D.C., beckons buyers to “select from an array of new vehicles brought into the US before April 3rd,” when tariffs were imposed. “I think it is a good sales tactic, but keep in mind right now they are tariff-free cars ... because the tariff has not started yet, and cars that are being produced will have tariffs, so I'm not so sure how they sustain that marketing,” said Tom Maoli, owner of Celebrity Motor Car Company, a dealership that operates Lexus, BMW, and Ford showrooms. Maoli, a Republican who worked on Trump’s first-term transition team, is not a fan of the tariff approach, and his stores aren’t using the tariff-free ploy. “This is a very short-term marketing plan,” he said, adding that when earlier imported car inventory runs out, and brands like Mercedes stop paying the tariffs, there’s only one place for it to go. “Manufacturers are going to have no choice but to pass it on to the consumer.” A 2025 Mercedes Benz AMG GT priced at $202,000 sits on display in the showroom of a Mercedes Benz dealership Thursday, March 27, 2025, in Denver. (AP Photo/David Zalubowski) · ASSOCIATED PRESS A Southern California dealer that operates a couple of mainstream franchises doesn’t like the policy either, but said there might be a choice. “We did [advertise tariff-free cars] in an email blast or two but have since stopped,” the dealer said, opting to remain anonymous. “Personally, I don’t like that kind of stuff, but if everyone is doing it, you sort of have to remain competitive.”