LONDON/DETROIT: As U.S. automakers brace for the financial impact of new 25 percent tariffs, car dealers with inventory built before the duties took effect are gaining a critical short-term edge.

With President Donald Trump's new tariffs set to add thousands of dollars to car prices, pre-tariff models have become hot commodities on dealership lots. Automakers and dealers are now racing to move inventory and strategize how to absorb—or pass on—the extra costs.

Toyota, with a lean supply of vehicles, could be among the first forced to raise prices. As of March 17, the company had just 32.7 days of inventory in the U.S.—well below the industry average of 89 days—according to Cox Automotive. Its best-selling RAV4 had only 20.9 days' worth.

Toyota said it doesn't plan to raise U.S. prices for now. But Erin Keating, executive analyst at Cox, noted, "They'll still be vulnerable because of the sheer math," even with Toyota planning to increase output at its Kentucky plant.

Other automakers are better positioned. Ford had a 103.4-day supply, and Hyundai had 107.4 days. In Connecticut, one Ford dealership is advertising: "100 pre-tariff Fords available!"

Shipments arriving before the April 3 deadline will qualify as pre-tariff models, temporarily shielding prices from hikes. A source at a major European carmaker said it rushed high-end models into U.S. ports ahead of the deadline.

The 25 percent tariffs also target engines, powertrains, and electronics—key components in both domestic and foreign vehicles. Analysts say the full impact of the parts tariffs will be felt by mid-April.

"No matter where they are made, car prices will go up," said auto analyst Mel Yu. "The impact of the parts tariffs will be pretty quick."

Yu said that imported parts account for 40–80 percent of the cost of U.S.-made cars and 20–40 percent of the retail price. He expects total vehicle costs to rise by 8–16 percent, adding 5–7 percent to monthly payments.

"Almost 97 percent of U.S. retail customers take either financing or a lease," he said. "So it's all about the monthly payment."

Higher insurance premiums are also expected as replacement parts become more expensive. "Higher monthly payments and premium hikes will force more U.S. consumers into the used car market," Keating said.

Dealers are trying to hold the line. Jim Seavitt of Village Ford in Michigan said he's covered—for now—with 90 days of supply. But if tariffs remain in place, "it's gonna hurt dealers."

Luxury automakers like Bentley and Ferrari plan to pass on the full cost to buyers. Mercedes-Benz, meanwhile, is stockpiling inventory and watching its competitors.

Economist Arthur Laffer noted that automakers with low stock "would need to raise prices almost immediately." Toyota's hybrid lineup is especially vulnerable.

"They have very low inventory... not even enough for one month, so everything will sell out soon," said Koji Endo of SBI Securities.

Analyst Seiji Sugiura added that the weak yen may help Toyota delay increases and steal market share—though "we don't know how the Trump administration would interpret this."

Specific models, including the Honda CR-V, Chevy Equinox, and Subaru Forester, are particularly exposed. "If it's a fast-selling car," Keating said, "it sells faster, and that supply gets adjusted downward very soon."