With the 25% automotive tariffs in effect as of April 3, franchise dealers across the U.S. are bracing for significant changes. While the uncertainty surrounding this policy is undeniable, there are clear steps you can take to prepare your dealership and maintain momentum during this transition.

Consumer Conversations Around Tariffs Increased 800% Since March 2025

Before the auto tariff announcements in March, we saw just a handful of customers asking Strolid’s Client Advisors questions about the tariffs.

Since the announcements, however, we have seen an 800% increase in customers asking us specific questions and talking about the tariffs, often expressing their urgency to purchase a car before any price increases.

Strolid gives you complete transparency of your customers’ conversations via the Strolid Portal and provides you with an unprecedented opportunity to sell a record number of vehicles in the next few weeks.

Understanding the Tariffs: What’s Happening Now

According to Reuters, this new tariff will be added to the existing 2.5% base tariff rate for automotive imports, impacting vehicles from countries with free-trade agreements with the U.S., such as Canada, Mexico, and South Korea.

Dealerships nationwide have already seen an uptick in customer activity as buyers rush to make purchases before potential price hikes. Our dealers have told us that their showrooms are busier than ever as customers try to lock in deals before April 3.

The Projected Impact on Your Dealership

Price Impact: Analysts are closely watching how the tariffs will impact both new and used car costs.

Decline in Imports: The U.S. International Trade Commission estimates a 75% drop in imported vehicles due to the tariff.

Parts Tariffs: Beginning May 3, tariffs on imported parts, including engines, transmissions, and electrical components, could disrupt service department operations and increase repair costs.

Domestic Price Hikes: Industry experts at Cox Automotive warn that domestic manufacturers may raise prices by up to 20%.

Resilience is in a Dealer’s DNA

“Tariffs and economic uncertainty have always been part of the landscape, but auto dealers are built for it. This industry has weathered recessions, inventory shortages, and rapid technological changes. Time and again, dealers have proven their ability to adapt, innovate, and thrive. Tariffs may shift the terrain, but they will not stop dealers. Resilience is in a dealer’s DNA.” – Vin Micciche, CEO & Founder, Strolid, Inc

Applying COVID-19 Lessons to Tariff Challenges

The COVID-19 pandemic taught dealerships how to adapt quickly and effectively under pressure, invaluable skills now. Strategies developed during the pandemic can help dealerships navigate this new landscape:

Digital-first Engagement: Strengthen online communication channels to connect with customers wherever they are.

Flexible Inventory Management: Adjust inventory strategies as a “day trader,” based on changing demand and supply chain disruptions.

Service Department Optimization: Focus on efficiency and customer retention in your service operations.

Proactive Communication: Keep your customers informed about changes and how they affect pricing or availability.

“Throughout history, auto dealers have demonstrated remarkable resilience as entrepreneurs, consistently adapting to various challenges,” explains Jason Branham, CRO at Strolid. “They recognize that maintaining consistency in their processes and personnel is paramount to their success.”

Action Steps for Car Dealers

Time is short, but there are several immediate actions you can take to prepare:

Assess Inventory: Identify which vehicles in your stock will be most affected by the tariffs.

Communicate with Customers: Reach out to your sales pipeline and encourage purchases.

Secure Pre-orders: Work with manufacturers to prioritize American-made vehicles in your inventory.

Prepare Your Service Department: Stock up on high-demand imported parts before component tariffs begin in May.

Maintaining Momentum After Tariffs Begin

Once the tariffs take effect, adapting your strategy will be critical:

Focus marketing messages on value rather than price.

Highlight domestic models prominently in your showroom and online listings.

Develop service packages designed to help customers extend their vehicle’s lifespan.

Be transparent with pricing structures so customers understand how tariffs impact costs.

Shawna Behen, VP of Operations at Strolid, emphasizes the importance of staying connected with customers during this time. “Dealerships that maintain consistent communication with both sales and service customers will see much stronger relationships during this transition period,” she said. “Communication is everything.”

How Strolid Can Help Your Dealership Navigate These Changes

At Strolid, we specialize in helping dealerships stay competitive through periods of industry change. Our solutions are tailored to meet your needs:

Sales BDC Services: Keep your sales pipeline active with professional outreach efforts targeting prospective buyers.

Service BDC Solutions: Maximize fixed operations revenue by scheduling appointments efficiently and proactively.

Outbound Marketing Programs: Craft messaging that addresses customer concerns about tariffs while emphasizing value.

Vin Micciche, CEO & Founder of Strolid: “Tariffs and economic headwinds aren’t new, they’re just the latest test. What history shows us is that the most resilient auto dealers aren’t the ones chasing trends, they’re the ones doubling down on Strong processes and Solid fundamentals. Inventory, interest rates, or policy changes happen, but what separates the best from the average is a disciplined approach to the basics, follow-up, customer experience, and operational consistency. That’s what wins in any market.”

Moving Forward With Confidence

While these tariffs undoubtedly present challenges, they also offer opportunities for dealerships willing to adapt and lead through change. You can navigate these changes successfully by applying lessons learned during previous disruptions, like COVID and CDK, and leveraging partners like Strolid.

Uncertainty often creates opportunities for those who are prepared to seize them. Dealerships that communicate effectively, adapt quickly, and prioritize customer needs will find ways to maintain momentum regardless of market conditions.

Ready to move forward confidently? Contact our team today to learn how Strolid’s solutions can help your dealership effectively navigate these tariff changes.