Several automakers, including General Motors and Hyundai, reported significant sales increases in the first quarter of 2025 ahead of impending tariffs on auto imports. GM experienced a 17% year-over-year increase in vehicle sales, while Hyundai and its Kia affiliate each saw growth exceeding 10%. Honda and Nissan also reported more than 5% growth compared to the previous year.
President Donald Trump announced a 25% tariff on imported vehicles and auto parts starting April 3, following his campaign promise to impose tariffs on various goods. Analysts believe these tariffs will likely be passed on to consumers through higher prices, potentially adding thousands of dollars to the cost of purchasing a vehicle. Approximately half of the cars sold in the U.S. last year were imports, and even domestically produced vehicles often contain foreign components.
Toyota’s sales growth was minimal at just 1%, and Ford’s unit sales declined by 1.3% due to the discontinuation of its Edge SUV for 2025. Despite this, many companies saw strong March sales as Trump’s intentions for tariffs became clearer. Analysts suggest that tariff-related anxiety has had limited effects on sales so far this year.
Jessica Caldwell from Edmunds stated that Trump’s trade policy may have only mildly impacted the first quarter, as details about auto tariffs emerged late in March. However, new-car buyers might accelerate purchases in April and May to take advantage of pre-tariff inventory.
Sam Fiorani from AutoForecast Solutions noted that March was better than expected for vehicle sales, but this could negatively affect April’s performance. He predicts a 3% drop in auto sales for 2025 due to higher prices and reduced inventory. Even U.S.-made vehicles like the Chevy Traverse could see price hikes because of imported parts.
GM and Hyundai are increasing U.S. production to mitigate tariff impacts. Hyundai’s CEO highlighted a $21 billion investment in expanding U.S. production near Savannah, Georgia. Experts warn that tariffs could slow the industry later in the year if car loan interest rates remain high, but short-term panic-buying could temporarily boost sales.
— new from The Washington Post