If Trump’s tariffs take effect next month, consumers are unlikely to see price increases until the current inventory is sold, according to Felipe Muñoz, a senior analyst at auto consulting firm JATO Dynamics. Across the industry, that could mean a roughly two-month buffer between tariffs starting and prices increasing at the dealership, Muñoz said.

Proposed 25% U.S. tariffs on Canada and Mexico could lead to a sharp increase in vehicle prices, auto industry executives and analysts say.

The European Union is scrambling to cut taxes on American cars in a bid to avert a trade war with Donald Trump.