NEW YORK–Concerned over looming tariffs, Americans are hitting the gas when it comes to buying cars.
As the Wall Street Journal shared, it interviewed one dealer who said one out of every four people who have called the dealership have asked, “Does this car have a tariff on it?’”
“Some consumers have accelerated their purchase decisions in recent weeks to avoid higher prices that could stem from tariffs, analysts and dealers say,” the Wall Street Journal reported. “Research firm J.D. Power said that tariff concerns were behind a forecast 13% surge in new vehicle sales by individual buyers during March.”
Bump to be Short-lived
But most analysts expect the sales bump to be short-lived if tariffs take effect and remain in place, the report added, noting the potential for higher prices would likely disrupt a two-year recovery of the U.S. auto market after pandemic-related supply chain problems snarled sales early this decade.
President Trump has said he plans to impose a 25% tariff on all imported vehicles effective today.
For March, Hyundai reported its U.S. sales were up 15%, marking the best performance for the month in the automaker’s history. Ford reported its U.S. retail sales jumped 19% in March.
A Market ‘Scramble’
“J.D. Power pointed to another sign that pending tariffs are beginning to scramble the car market: The inventory of new cars on dealership lots ticked higher, an indication that automakers have accelerated shipments of imported vehicles to beat the tariff deadline,” the Journal added.
J.D. Power further noted that any future price increase would worsen an existing affordability problem in the U.S. car market. New vehicle prices rose by about one-third from 2019 to 2024, to the mid-$40,000s.
