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. 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 that even affluent shoppers seek value. General Motors is expected to have sold the most new cars in the US in the first quarter, but its sales will be lower than last year. Toyota will gain market share. The industry is looking for a renegotiation of the US-Mexico-Canada Agreement to offer more stable relief from tariffs.
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