New car price hikes unavoidable, experts say, as tariffs continue
New car prices in the US are expected to rise due to tariffs imposed by President Donald Trump, which cost automakers and suppliers an estimated $35 billion last year. The price hikes are unavoidable as carmakers can no longer absorb the costs, according to Cox Automotive.
The US new car sales volume is uncertain this year due to economic volatility. However, vehicle prices will rise as carmakers offset tariff costs. The total burden of tariffs on imported cars and auto parts cost automakers $35 billion last year. Cox Automotive expects US retail car sales to be down 2.6% this year. Hybrid powertrains are in high demand due to rising gasoline prices. The price gap between gasoline vehicles and electric vehicles is narrowing. Mid-range vehicles are top sellers, indicating even affluent shoppers seek value. General Motors is expected to have sold the most new cars in the US, but its sales will be lower than last year. Toyota will be the winner with sales gains. The automotive industry is looking for a renegotiation of the US-Mexico-Canada Agreement to offer more stable relief from tariffs.
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