How Dealers Can Survive Trucking Industry Tariffs

In today's global economy, even trucks assembled in American plants often rely on parts sourced from outside the country, and more than 40% of the Class 8 trucks sold in the U.S. are imported from Canada and Mexico. Tariffs on these parts and vehicles could significantly increase the price of new trucks. S&P Global Mobility estimates that the price of heavy-duty vehicles could increase by approximately 9%, with demand falling by as much as 17% if tariffs last for a full year.

When faced with the increased cost of new trucks, dealers have two choices: Pass the cost on to their customers or absorb the extra expense. Neither is ideal as one risks alienating customers, and the other puts pressure on already tight dealership profit margins.

Even though delays have been announced for certain tariffs, the current political climate suggests we'll continue to see them levied as this administration promotes U.S. manufacturing. Dealers need to stay up to date daily on what's unfolding and be flexible in how they respond.

Even if dealers can't influence tariffs, here’s how to survive tariffs with a few steps to lessen their impact:

Evaluate Vehicles Currently in Inventory: Meet with customers to determine if it makes sense to change their buying patterns and focus on purchasing vehicles already in stock, thereby avoiding tariffs.

Talk With Vehicle Manufacturers: Ask OEMs where they see vulnerabilities in the supply chain that could impact truck production or access to replacement parts. For example, Tesla recently announced it’s suspended plans to import parts from China for the Semi. Other manufacturers may also be reassessing their parts sourcing strategies, which could impact availability during the transition.

Evaluate Existing Parts Inventory: Consider increasing your on-hand inventory by purchasing parts currently available at your preferred vendors. According to Transport Topics, “U.S. importers looking to sidestep Trump administration tariffs are desperately seeking space in a type of warehouse that lets them stash merchandise for as long as five years without paying duties.” Truck parts suppliers may be doing the same to try and prepare for a potential tariff rebound.

Begin Investigating U.S. Sources for Replacement Parts and Shop Suppliers: If tariffs are reinstated and offshore replacement part prices rise, a domestic parts supplier could provide a more cost-effective solution. However, don't wait until you're in dire need of parts to look for these sources. Build a larger parts supply network now to insulate yourself from potentially having to pay more for imported parts.

Perform an Operational Analysis: Identify areas within the dealership where improved efficiency can trim costs. Take a department-by-department approach to uncover waste and inefficiency, review every procedure to determine if there are ways to streamline processes, and reduce unnecessary costs. A recent CDK report, 2025 State of the Industry, found that dealerships prioritizing operational efficiency saw a 60% improvement in operating profit.

Look for Ways To Leverage Technology: Technology is an especially effective option for administrative departments. If you're still manually processing invoices, you're wasting both time and money. Levvel Research estimates it costs $15 per invoice and more if there are errors. An automated invoice processing system lowers the cost, improves accuracy and reduces disputes. Technology can also improve things like order tracking and forecasting.

Ramp Up Communication: During times of uncertainty, it's extremely important to stay connected to your customers. Share any insights you have and address their concerns as they navigate the impact of tariffs on their operations.

CDK data shows that self-identified trendsetters — dealers more willing to adapt — experienced the most positive business outcomes. As with any challenge, preparation is the first line of defense. Make sure you understand how tariffs might increase costs at your dealership and develop strategies to mitigate those costs while supporting your customers.