Automakers Experience Surge in Sales as Consumers Rush to Avoid Upcoming Tariff Increases

With teh looming U.S. auto tariffs, car makers are witnessing a notable uptick in sales as consumers rush to make purchases before prices rise.

As reported by The New York times, Ford experienced a 19% increase in dealership sales during March, while General Motors enjoyed a 17% year-over-year growth in their first quarter figures. Notably, GM’s electric vehicle sales doubled compared to last year, and Toyota saw its EV and hybrid models soar by 44% just in March alone. Meanwhile, Ford’s hybrid offerings also gained traction with a 33% rise throughout Q1.

Starting April 3rd, president Trump’s proposed tariffs of 25% on imported vehicles will kick in, with plans to extend these tariffs to auto parts shortly after. The White House indicates that nearly half of the cars sold in the U.S.—around 16 million—were imports last year. Goldman Sachs warns that these tariffs could inflate prices for new foreign cars by as much as $15,000; additionally,vehicles made domestically but containing foreign components might see an extra $8,000 added to their price tags. According to Altana—a supply chain analytics firm—the impact of these auto part tariffs could reach up to $24.8 billion across various car components like brake systems ($12.8 billion) and piston engines ($7.9 billion).