Seattle car dealer explains status of market amidst instability of tariffs

Local car dealerships describe the U.S automotive market as one that's been turned on its head, since large tariffs were first introduced earlier this year.

However, they also say that the lack of clarity is why buyers should act sooner rather than later. Jim Walen of Hyundai Seattle, along Aurora Avenue, says that although President Donald Trump announced 25% tariffs this Spring, which were slated to kick in by early April, there still haven't been definitive deals made internationally.

“I don't think that the tariffs have been fully negotiated yet, so we don't know what the effects of the prices are going to be there,” the long-time dealership owner explained.

Walen said that most of his inventory right now is still comprised of pre-tariff vehicles, however the clock is ticking on those models.

"Are [prices] going to go up over the tariffs? I think the consensus is yes," he said about the position that car dealers are being put in, like himself.

Dee, who didn't want to share her last name, was at Walen's dealership on Thursday. She lives in Issaquah, and just bought a new Hyundai Hybrid around a week ago. She stated that during her shopping experience, the price tags she saw were not above her expectations. She said the sticker price on her new SUV was about what she wanted.

“I believe that [the] 2026 [models] have tariff pricing, especially like bigger models: [the Hyundai] Palisade, [their] SUV, [their] hybrid ones, were going to be a lot higher,” Dee said, about why she made her big purchases this year, in anticipation that tariffs don't hit the U.S too hard.

"Hopefully the world gets better with tariffs, everybody negotiates with us, and we hope we don’t get in that trap of economic downfall," she said.

Meanwhile, Walen also says that electric vehicles (EVs) are bound to shift the market as well. As of Sept. 30, due to new stipulations within President Trump's Big Beautiful Bill, there will no longer be green credits for manufacturers tied to EV manufacturing, and mandates for EV sales. It will also bring a stop to the $7,500 federal credit given to those who purchase an EV.

"It's $7,500 off the price of the car, the average price of a car in the United States is right at $50,000, [or] right just under [that]. So that's a huge chunk of money," said Walen.

For all the reasons mentioned, Walen said that is why he believes that consumers should buy a new vehicle-- whether it's gas, electric, or hybrid -- to get ahead of the tariffs before they take a clearer grasp on the market, and before EVs enter a new era in October. That being said, Walen believes it's a trend he's already seeing happen.

"I think that for the short term, people are really, really trying to beat some of the things -- some of the pressures -- there are going to be, to have prices and monthly payments still go up," he explained.

For Dee, the new Hyundai owner, she says that her particular model was assembled in the U.S, in Georgia, where Walen said a massive new plant was built by Hyundai.

For that reason, she said her price wasn't impacted and was not subject to tariffs. It's another factor to consider if you're looking to buy in the foreseeable future.