Trump’s Auto Tariffs Trigger Uncertainty in UAE Car Market

Abu Dhabi : Experts weigh in on how Trump’s tariffs could affect car prices, model availability, and spare parts in the UAE—some warn of price hikes, others expect new opportunities.

• Trump announces 25% tariffs on all auto and parts imports into the US.
• Experts predict mixed impact on UAE car prices and supply chains.
• UAE may see price hikes on US and US-spec vehicles.
• Inventory redirection from the US may bring new models and better deals

The recent announcement by US President Donald Trump to impose steep 25% tariffs on all imported vehicles and auto parts has raised serious concerns globally, including in the UAE. While some industry insiders predict price hikes and limited availability of certain car models and parts, others suggest the UAE may actually benefit from surplus inventory as global automakers redirect supply.

Mixed Reactions from UAE Industry Experts

Shah Bashrat, a long-time automotive industry expert, warned that the impact of the tariffs would not be limited to the US. “This will fuel a price increase not just in the UAE but across the world,” he said, pointing to the large number of global manufacturers with plants in the US.

His views are echoed by Ifthikar Aly, Founder of Kandy Cars, who imports American muscle cars into the UAE. “The price of the vehicles we specialise in will likely increase, albeit after a few months,” he said. “American specification vehicles from non US-based manufacturers like Lexus, BMW and Mercedes may experience price increases ranging from 10 to 15 per cent.”

However, not all outlooks are bleak. Rahul Singh, Managing Director at Dollar and Thrifty UAE, argued that this could mark a new era of opportunity for the UAE automotive market. “Unlike the US, where tariffs will directly increase costs, the UAE is more likely to see stable or even lower car prices,” he said.

What UAE Drivers Should Expect

• Higher costs: Prices of US-made cars and American-spec imports may rise.
• Spare part delays: Expect longer wait times for parts from affected markets.
• More choices: Extra inventory from global automakers may arrive in the UAE.
• Quick buying decisions: Buyers may rush to purchase before prices increase.

Opportunities from Disruption

The shifting global trade climate may force manufacturers to offload inventory elsewhere, and the GCC—particularly the UAE—is well-positioned to absorb it. “These vehicles must go somewhere, and the GCC, including the UAE, is a strong contender,” said Rahul.

Abhinav Gupta, CEO of CARS24 in the Gulf, agreed, but added caution. “The auto sector in the GCC will largely remain on the safe side for customers; however there may be some disruptions to the global supply chain from the newly implemented tariffs,” he explained.

He noted that while spare part availability and new model flow may slow down, Asian automakers—especially from China—could step in with competitive offerings. “The tariffs will also open an opportunity for cars produced in Asia, especially China, to capture a higher market share in this region due to their competitive pricing and high-efficiency models,” he said.

A Volatile Road Ahead

The coming months are expected to be crucial as global automakers adjust their strategies and supply lines. “Countries in the Middle East are focusing on trade talks, especially about tariffs, while major economies like China, Japan, and Korea are struggling with their manufacturing,” said Rahul.

For now, UAE customers may benefit from a short-term window of better deals and options. But with rising inflation, global supply concerns, and economic unpredictability, the car market is heading into a period of watchful uncertainty.