President Trump's proposed auto tariffs are causing concern among customers and dealers in WHIPPANY, New Jersey.

At the Lexus of Route 10 dealership in the New Jersey suburbs, there was a noticeable increase in activity as the deadline of the impending 25% tariffs on foreign cars approached. Tom Maoli, the owner of Celebrity Motor Car Company, which includes Lexus of Route 10, BMW, Ford, and Mercedes dealerships, observed that customers are rushing to purchase cars out of fear of the potential price hike. With the average car price in the US currently at $40,000, the anticipated $10,000 increase due to the tariffs is motivating buyers to act quickly.

Maoli emphasized that buyers are primarily focused on the monthly payment rather than the total cost of the vehicle. He mentioned that the average monthly payment for a new car reached $754 last quarter, and an additional $300 increase could push payments over $1,000/month, which is a significant financial burden for owners.

In preparation for the tariffs, Maoli and other dealers are increasing their inventory levels. With most dealers maintaining a supply of 50 to 100 days of new cars, they are trying to secure as many vehicles as possible before the tariffs come into effect. Additionally, Maoli is stockpiling auto parts for his service centers to accommodate the anticipated surge in repair requests.

The impact of the tariffs extends beyond foreign automakers like BMW, Volkswagen, and Lexus, as domestic automakers are also feeling the repercussions due to their international assembly operations and complex supply chains. Maoli highlighted that even stocks of domestic automakers, including Tesla, are being negatively affected.

As a Republican who was involved in Trump's first-term transition team, Maoli believes that incentivizing domestic production through positive measures is more beneficial than resorting to punitive tariffs.