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 experts at Cox Automotive.
The US new car sales volume is uncertain this year due to economic volatility. Vehicle prices will rise as carmakers offset tariff costs. Cox Automotive estimates that tariffs cost automakers $35 billion last year. The company expects US retail car sales to be down 2.6% this year. Hybrid powertrains are in high demand due to rising gasoline prices. Electric vehicle interest is also increasing, but may drop if the Middle East conflict is resolved. The price gap between gasoline vehicles and EVs is narrowing.
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