The 25 per cent tariffs from the U.S. going into effect on April 3 would increase the price of a car by thousands, while those in the industry say the mere threat of the tariffs is keeping buyers away.

A 25% tariff on all cars and parts imported to the United States went into effect Thursday. President Donald Trump said taxing foreign-made vehicles and parts is intended to boost the American auto-manufacturing industry.

Car dealers turn over their inventory every two months on average, Fiorani said, so “by early summer, we’ll have fresh vehicles that are likely to be influenced by the tariffs” on local car lots. But dealers could raise prices sooner, knowing that customers who come in post-tariffs are likely willing to pay a premium, Fiorani added.