If you’re in the market for a new or used car in Australia, you might want to keep an eye on what’s unfolding across the Pacific. The United States has imposed a hefty 25% tariff on imported motor vehicles, engines, transmissions and other crucial car parts — and while it might sound like American politics that don’t concern us, the ripple effects could reach Australian shores sooner than you think.
So, what do Trump’s car tariffs actually mean for Australians (and what could they mean for everyday services and the broader automotive supply chain)? Let’s break it down.
What Are the Tariffs, and Why Are They Happening?
US President Donald Trump pushed for a 25% tariff on a wide range of imported vehicles and car components, framing it as a national security measure. The logic? That an overreliance on foreign manufacturing weakens the US auto industry and its defence readiness.
While this move may have aimed to protect American manufacturers, it has raised alarm bells globally. For countries like Australia that are heavily reliant on imports for both complete vehicles and parts, the tariff could result in higher costs, reduced supply, and delays.
How Does this Affect Australians (Even from Afar)
You might be wondering: “But we don’t buy cars directly from the US, do we?” Well, not in huge numbers. According to the Federal Chamber of Automotive Industries (FCAI), American-made vehicles make up a relatively small percentage of Australia’s annual imports — think iconic models from Ford, Chevrolet, Jeep and RAM.
But here’s where it gets interesting. Many parts used in assembling vehicles in other countries are sourced from the US. And, just as importantly, many performance and aftermarket car parts that Aussies love to get their hands on — especially for muscle cars or American classics — often come from North America.
In other words, when the US slaps tariffs on imports and trading partners retaliate, we all end up paying more at some point down the track.
A Knock-On Effect on Parts and Servicing
One of the immediate concerns for Australian car owners is the cost and availability of parts, especially for newer or US-origin cars.
Components like transmissions, engines, and electronic systems are frequently sourced from or through American supply chains. If those parts get pricier or harder to obtain, that hits both customers and local mechanics alike.
Let’s say your car needs brake servicing. If your vehicle uses American parts (even indirectly), you could find yourself stuck between a rock and a hard place: paying more or waiting longer for components to arrive. Small delays in supply can lead to extended repair times or reduced access to certain models’ parts, which doesn’t do your wallet or your schedule any favours.
What Does This Mean for Car Prices in Australia?
Higher import costs inevitably trickle down to consumers. Already, Australian dealerships and importers are forecasting price increases for certain makes and models. If you’re eyeing off an American SUV, ute, or luxury vehicle, you might want to lock in a price sooner rather than later.
But even beyond American-branded vehicles, the industry is interconnected. Many manufacturers operate global supply chains — if even one key part becomes expensive or delayed due to tariffs, the entire cost structure changes.
In fact, some industry insiders believe Trump’s tariff could impact car prices across all brands, especially if manufacturers are forced to reconfigure where they get parts from or pass those cost increases along to consumers.
Trade Tensions and Aussie Interests
Australia isn’t directly in the firing line of the US tariffs, but we’re definitely in the splash zone. Experts are warning that increased protectionism, supply chain reshuffling, and growing trade tensions could make global vehicle pricing less predictable for years to come.
There’s also the matter of specialty vehicles and enthusiast imports. From the classic Mustangs to American muscle cars, many Aussies have a soft spot for US-made rides. Take, for instance, theSaab 900 — a vehicle celebrated for its engineering pedigree and enthusiast following. While not American in origin, it’s an example of how much pride Australians take in sourcing and maintaining niche cars, many of which depend on imported parts, regardless of country of origin.
When costs go up or supply becomes unstable, it’s not just daily drivers that feel the pinch. Collectors, tuners, and restoration hobbyists could also find themselves out of pocket.
What About the Aussie Auto Industry?
It’s no secret that Australia’s local car manufacturing industry has all but disappeared over the past decade. With Holden gone and Toyota, Ford and Mitsubishi having ceased local production, we rely heavily on overseas manufacturing.
That makes us especially vulnerable to international trade policy. While some sectors are pivoting towards electric vehicles and hybrid technologies, most of these too depend on foreign-sourced batteries, microchips, and drivetrains — components that could easily be impacted by a protectionist shift in the global automotive economy.
How Can Consumers Prepare?
For now, Australian car buyers and owners can stay ahead of the curve by:
- Being strategic with servicing: If your car is a US brand or uses American components, consider pre-booking major services ahead of time, especially if you notice wear.
- Planning parts replacement early: Don’t wait for a breakdown. If your mechanic says a part’s showing signs of fatigue, look into sourcing it sooner.
- Exploring alternative models: If you’re in the market for a new vehicle, consider brands that have stronger ties with Europe or Asia, which may be less affected by US tariffs.
Trump’s car tariffs may have been made with American factories in mind, but their impact is global, and Australia isn’t immune.
For car buyers, mechanics, and car part importers, these changes could translate into higher costs, longer wait times, and a general reshuffling of how vehicles are maintained and purchased.
It’s a classic case of being caught in the crossfire even when the fight isn’t ours. But with smart planning, some industry know-how, and a bit of foresight, Aussie consumers can navigate the bumps in the road ahead.
