Americans are heading to dealerships to buy cars ahead of projected price hikes caused by a series of new tariffs affecting the automotive industry, according to new sales data.
In an April 15 presentation, Cox Automotive chief economist Jonathan Smoke said sales of both new and used automobiles increased sharply at the beginning of 2025 compared with prior years.
“Sales of new vehicles are accelerating as consumers move to buy before the pre-tariff inventory is exhausted,” Smoke said in his most recent Auto Market Report presentation. “Sales for used are up as well, just not as strongly.”
In April, the United States enacted a 25 percent tariff on finished automobiles imported into the country. In May, it will enact a 25 percent duty on automotive parts and components, too. Both changes, along with similar tariffs on steel and aluminum imports, are expected to drive up the prices of automobiles….