New car price hikes unavoidable, experts say, as tariffs continue
New car prices in the US are expected to rise due to tariffs on imported cars and auto parts. The total burden of these tariffs cost automakers and suppliers an estimated $35 billion last year, and they can no longer absorb these costs, leading to higher vehicle prices.
The US new car sales volume is uncertain this year due to economic volatility. However, vehicle prices will rise as carmakers look to offset tariff costs. The total burden of tariffs on imported cars and auto parts was $35 billion last year. Carmakers absorbed these costs initially, but now they are looking to recoup them through higher prices. Hybrid powertrains are currently in high demand due to rising gasoline prices. The price gap between gasoline vehicles and electric vehicles is narrowing. The first-quarter data shows US retail car sales will likely be down 2.6% this year.
This content was automatically generated and/or translated by AI. It may contain inaccuracies. Please refer to the original sources for verification.