US auto sales set to modestly rise in first quarter as tariffs signal bumpy ride

Reuters

Tue, Apr 1, 2025, 3:22 AM 1 min read

(Reuters) - U.S. car income apt inched higher successful the archetypal 3 months of the twelvemonth connected dependable demand, information from the carmakers volition amusement connected Tuesday, arsenic the manufacture braces for the fallout of President Donald Trump's latest tariffs.

Market probe steadfast Cox Automotive has estimated that U.S. new-vehicle income measurement accrued 0.6% to 3.79 cardinal units successful the archetypal 4th from a twelvemonth earlier.

"Automotive tariffs — present acceptable to instrumentality effect connected April 2 — mightiness person pulled up immoderate conveyance purchases successful Q1," said Jessica Caldwell, caput of insights astatine automotive information supplier Edmunds.

General Motors pickup trucks and SUVs are expected to assistance it clasp its apical spot successful the quarter, followed by Toyota Motor's North America portion and Ford, according to Cox.

Electric-vehicle shaper Tesla is besides forecast to study a driblet successful first-quarter conveyance deliveries connected Wednesday.

President Trump's determination to levy tariffs connected U.S. car imports is wide seen arsenic weighing connected user sentiment and forcing a rethink connected purchases.

The tariffs could besides trim the fig of lower-cost imported vehicles connected the market, specified arsenic Ford's compact Maverick pickup truck, further straining affordability arsenic the mean new-vehicle terms nears $50,000.

"The imaginable for higher ostentation owed to caller tariffs astatine American borders volition each perchance clasp backmost new-vehicle income successful 2025," Cox said.

Caldwell said tariffs would apt make challenges for the manufacture successful the 2nd 4th and beyond and expects discounts to beryllium "harder to travel by".

(Reporting by Nathan Gomes successful Bengaluru; Editing by Sriraj Kalluvila)