Used Car Market — PSA
The Role of Tariffs on Used Cars — Print Story Feature
By Keith Meade 5:45 PM EDT March 22, 2025 Why Used Car Prices Are Driving Up: The Role of Tariffs Morristown, Tenn. — Used car prices are hitting historic records with no relief in sight. The central part of the problem? The ongoing shortage of semiconductors. But there's also something less talked about: the long-lasting effects of tariffs implemented by both the Trump and Biden administrations. As new tariffs are enacted in 2025, they are causing issues for shoppers nationwide. The Tariff Problem In 2018, the Trump administration imposed tariffs of 25% on steel and 10% on aluminum imports. However, these tariff increases are impacting global trade in unexpected ways. U.S. automakers, who rely on overseas suppliers, mainly from Europe and Asian countries, were hit hard for key components like semiconductors. The result? Manufacturing costs for new cars skyrocketed, pushing buyers into the used car market and increasing prices. In March 2025, the Trump administr...
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