Tariff worry boosts Spokane-area car sales: ‘Buyers want to get ahead’

March is generally a good time for those who sell new and used cars. But the chaos swirling around President Donald Trump’s wave of new tariffs made the past month particularly good.

“It really got busy at the end of March,” said Andy Olson, who is the general manager of George Gee Kia Spokane and George Gee GMC located in Liberty Lake. “Customers were telling our salespeople that they were concerned about price increases once the tariffs took effect.

“That’s why some of the people have sped up their purchase time.”

While Olson said the dealership has not yet boosted prices, some changes could be on the way. Kia builds some cars in a plant in Georgia, but the company was founded in South Korea.

And starting on Wednesday, South Korea stands to face a 25% tariff in an effort to reshuffle the world economic order, Trump announced.

South Korea’s trade minister is traveling to Washington, D.C., and expects to be among the first in a wave of diplomats seeking to reduce or eliminate the fees that will be charged to U.S. importers who try to bring in goods from different countries, according to Bloomberg News.

“Like with South Korea, we are bringing up other subjects that are not covered by Trade and Tariffs, and getting them negotiated also,” Trump wrote in a social media post, describing his interactions with other nations. “ONE STOP SHOPPING is a beautiful and efficient process!!!”

Just like his earlier announcement of tariffs, which were followed by pauses, Trump spoke as if negotiators could work out some sort of deal, according to the Washington Post.

“We’ve had talks with many, many countries – over 70,” Trump said. “They all want to come in. Our problem is, can’t see that many that fast.”

At Tuesday’s briefing, White House press secretary Karoline Leavitt pushed back on the idea that the administration had altered its support for keeping the tariffs.

“It is a nonnegotiable position that the United States has faced a national security and economic crisis because of the unfair trade practices by countries around the world,” she said, according to the Washington Post. “The entire administration has always said that President Trump is willing to pick up the phone and talk.”

But in Spokane, the prospect of higher prices and the uncertainty seems to be having a direct effect.

“I think it’s the unknown right now,” Olson said. “There is a sign in the market that buyers want to get ahead of the tariffs. I don’t blame consumers for doing that.

“As a consumer, I have the same concerns,” he continued. “We don’t want to deal with high prices for everything, especially for a purchase like an automobile.”

He noted that he heard that two ships ferrying Kia cars from South Korea were stopped while in transit until the tariff issue was ironed out. He also noted that George Gee has not raise any of its prices yet, especially for anything that has already been ordered.

For example, the 2025 Kia Sportage PHEV X-Line Prestige starts at about $44,315. If the 25% tariff kicks in on Wednesday, it could add more than $11,000 to the final price, according to a Kia website.

Even the Gee GMC vehicles could potentially see price increases. While GMC primarily is an American company, it assembles some of its cars in Mexico.

“So, we are trying to stay with the consumer just because we don’t know how much the prices are going to increase once the tariffs are in place,” Olson said.

Sam Perry, the general sales manager at Corwin Ford Spokane, formerly Gus Johnson Ford, said he’s kind of seen a mixed reaction from consumers at his dealership, located at 8300 E. Sprague Ave., in Spokane Valley.

“There are some people who are using tariffs as a justification to move up their timetable. But there are some who don’t want to buy because they want to see what happens with the tariffs,” he said.

Like George Gee, Corwin Ford experienced a strong sales month in March. He noted that Ford is ensuring prices for any cars or trucks purchased at the dealership, meaning that the price won’t change for any orders being placed now.

Perry said he read that Stellantis, formerly known as Chrysler, has shut down production at plants in Canada and in Mexico, while the maker of Jaguar and Land Rover has halted shipments from Britain, as they all try to figure out how the tariff issues will play out.

“A lot of manufacturers are having an adverse reaction. Ford is not slowing down production at all,” Perry said.

He said the company is launching a “From America, For America” campaign “and offering employee pricing to all consumers for the vast majority of our lineup,” he said.

“They are doing everything in their power to keep things affordable. They are fully aware that they can’t raise prices 25% and not expect an uproar.”

If the local dealerships do raise prices on new cars, both Perry and Olson agree that it will have an immediate effect on the prices of used cars.

“There is doubt and fear around the used car market,” Perry said. “If new car prices go up, that will lead more people to used, and the used-car prices will go up, as well.”

And prices may not be the only factor. Olson noted that if Kia tries to avoid tariffs and only uses its manufacturing facility in Georgia, it could reduce the number of new cars that are available.

“That’s what happened during COVID,” Olson said. “Prices did increase because there was a whole lot less inventory on the ground.”