BEND, Ore. – In response to President Donald Trump’s announcement of new tariffs, which include a 25% global tax on car and truck imports, local businesses, including those in Central Oregon, are beginning to feel the effects. Subaru of Bend, a dealership owned by Matt Thomas, has experienced a noticeable uptick in sales as customers rush to purchase vehicles before the tariffs go into effect on Thursday.
Thomas, who has owned the dealership for several years, noted that the past two weeks have seen sales double compared to previous weeks. “The last two weeks, we’ve seen a higher sales rate. It was maybe roughly double what it was, and I think that was due to the tariffs,” he said.
The tariffs, part of a broader trade policy affecting nearly all of the United States’ trading partners, place a 10% baseline tax on imports from countries across the globe. This is in addition to higher tariffs targeting China, the European Union, and other nations. The automobile industry has been especially impacted, with experts predicting price hikes in the short term as manufacturers adjust to the changes.
For Thomas, the new tariffs present an opportunity to level the playing field between the U.S. and other countries. “Germany charges 15% for automobiles to go into Germany. We charge 2.5% for them to come here. So when this goes down, prices aren’t gonna go up, they’re gonna come down,” Thomas explained. “Germany has a decision to make. Are they going to come down to 2.5%? Because we’re just gonna do reciprocal—whatever they charge us, we’re gonna charge them.”
While Thomas is hopeful the long-term effects will benefit U.S. consumers, he acknowledges that there may be some short-term challenges. He expects car dealerships across the country to mark up prices by $4,000 to $8,000 for a period of 40 to 60 days before settling back down.
Subaru of Bend, however, may be in a slightly more favorable position than other dealerships. Many Subaru vehicles are manufactured in the U.S., meaning that a significant portion of their stock is less affected by the tariffs. “I think the sales rate will drop while people are seeing what the uncertainty is, but we’re gonna get the message out that we have enough product to last the next three or four months and I know everything will be resolved by then,” Thomas said.
Despite this, the dealership is not immune to the broader uncertainty in the market. Employees at Subaru of Bend reported that the ongoing tariff discussions have made customer interactions awkward, as some buyers feel rushed to make a purchase before the tariff increases take effect. “It’s a bit tense,” one employee shared, though they declined to speak on camera.
Many customers are weighing the potential cost increases against the immediate availability of vehicles. Some have expressed concern over the tariffs but are still opting to buy sooner rather than later, hoping to avoid the added expense.
In an effort to maintain fairness for local buyers, Thomas has committed to selling cars only within Central and Eastern Oregon. The dealership will not mark up the prices of vehicles over the Manufacturer’s Suggested Retail Price (MSRP), a practice that Thomas maintained during the COVID-19 pandemic. “So Jefferson, Crook, and Deschutes County, and east,” he said. “We do not mark up our cars over MSRP. We did not do it for the three-year period during COVID. We would not sell a car into Portland, Seattle, Eugene, or Salem.”
As the tariffs begin to take effect, the future of the auto market remains uncertain. While some experts predict price hikes in the short term, others are hopeful that international trade policies will eventually balance out, benefiting U.S. consumers in the long run. For now, businesses like Subaru of Bend are navigating these changes with a mixture of optimism and caution, hoping to weather the storm and keep their loyal customers satisfied.
