How Santa Barbara Is Responding to Trump’s 25% Auto Tariff
SANTA BARBARA, Calif. — President Donald Trump’s newly announced auto tariffs are no April Fools’ prank.
The 25% tariff on imported vehicles is set to take effect April 2, with the U.S. starting to collect the duties the following day. Additional tariffs on imported auto parts are expected to roll out in May.
“This will continue to spur growth like you haven’t seen before,” Trump said Wednesday afternoon from the Oval Office. He emphasized that the tariffs apply only to vehicles built outside the United States. “If you build your car in the United States, there is no tariff.”
Trump projected the tariffs could generate between $600 billion and $1 trillion in revenue for the country over the next two years.
The market’s reaction to the news was swift. Shares of the Big Three U.S. automakers — Ford, General Motors, and Stellantis — all took a hit Thursday morning. Ford stock dropped 38 cents, or 3.7%, to $9.92. GM shares fell 7.3%, while Stellantis declined by 2.6%.
Tesla, which manufactures its vehicles domestically, saw a boost, rising $7.13, or 2.6%, to $279.19. However, CEO Elon Musk cautioned on social media that the electric carmaker is not immune to the new policy, as some parts are sourced internationally.
“Important to note that Tesla is NOT unscathed here,” Musk posted on X. “The tariff impact on Tesla is still significant.”
In a statement Wednesday night, Matt Blunt, president of the American Automotive Policy Council — which represents Ford, GM, and Stellantis — said the automakers remain aligned with the administration’s goal.
“U.S. automakers are committed to President Trump’s vision of increasing automotive production and jobs in the U.S.,” Blunt said, “and will continue to work with the administration on durable policies that help Americans.”
In Santa Barbara, dealership representatives declined to speak on the record, but many continued showcasing 2025 vehicles, including both gas-powered and electric models, at lots near Calle Real.
Local car buyers expressed mixed feelings. Peter Rojas said he’s reconsidering plans to upgrade his 2019 Mazda.
“I was thinking about getting a new car within two years,” he said. “Now I’m wondering if I can stretch that timeline even longer.”
Others, like apprentice mechanic Jolver Santos Alvarez, believe the announcement might create urgency among shoppers.
“I think people will try to buy before next week because prices could spike,” he said. “Dealers might start adding markups and blaming the tariffs.”
Elliot Murray said he’s more inclined to buy a used vehicle online, but he supports expanding U.S.-based manufacturing.
“On a bigger scale, I think we should invest more in making things here — especially cars — and provide more jobs for American workers,” he said.
Dealers estimate the average cost of a new car is currently around $48,000, while used vehicles average about $25,000. Both figures could climb once the tariffs are fully in place.
