Tariffs aren’t new news in the automotive world — but with Trump now finalising a sweeping 25% hit on vehicle imports from Europe, Japan, South Korea, Mexico and Canada, the pressure has gone from background noise to front and centre.
For dealerships, the effects are already being felt. Showrooms have been buzzing with buyers eager to beat the price hikes — but many in the industry know this short-term spike could soon give way to a longer-term slowdown.
And that means one thing: uncertainty. Especially when it comes to staffing.
The Sales Surge Before the Slump
Dealers across the U.S. are reporting a surge in customer activity — Ford saw a 5% jump in Q1 retail sales, and GM’s up 15%. But this isn’t just good news — it’s urgency. Many sales teams are calling customers with vehicles on order, encouraging them to switch to in-stock models before tariffs push prices up.
Because once those price hikes hit, demand could fall — fast.
John Crane, CEO of Hawk Auto Group, put it plainly:
“When prices go up, sales go down.”
Some forecasts suggest U.S. auto sales could drop by as much as 3 million vehicles, or roughly 20% of last year’s total. If that plays out, the impact on dealership staffing could be significant — from sales floor to service bay.
What This Means for Hiring
If customer footfall drops and costs rise, some dealers may need to scale back — delaying expansion plans, holding off on new hires, or even making difficult decisions around current headcount. Others might double down on aftersales to offset thinner sales margins.
There’s also the potential for staffing whiplash:
- A hiring push to meet current demand
- A sudden stall if that demand disappears
- Then, pressure to pivot and support growing service and parts departments as more customers hold onto older vehicles
This kind of volatility is tough to manage — unless you’ve got flexible hiring options and access to people who can hit the ground running.
How Holt Automotive Staffing Can Help
We’ve seen the market shift before — and we’ve helped dealerships ride it out. Whether you’re scaling up, reassessing your structure, or just trying to stay nimble, we’re here to support you.
- Fast access to skilled dealership staff across sales, service, parts and admin
- Flexible hiring models to help you adjust to short-term spikes or slowdowns
- Industry insight that keeps your team prepared, not panicked
And we don’t just “fill roles.” We build long-term partnerships with dealers who want to stay ahead of the curve — and make smart hiring decisions no matter what the market throws their way.
If you’re watching this situation closely and wondering how to plan your team around the impact of increased tariffs — let’s talk.
Contact us here and we’ll work with you to keep your business moving, whatever comes next.
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