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US Car Prices Rise After Tariffs Hit

Automakers are adjusting to 25% U.S. tariffs on vehicle imports from many countries, including major trading partners Mexico and Canada.


US Cars

 

Prices of U.S. new vehicles rose in April, according to data released on Monday, a sign that the effects of President Donald Trump’s auto-tariff measures are rippling through the car market.

Automakers are adjusting to 25% U.S. tariffs on vehicle imports from many countries, including major trading partners Mexico and Canada, but few have raised sticker prices. Some, like Hyundai, Ford and Jeep-maker Stellantis, have even rolled out deals to reassure buyers and keep sales flowing.

The average price consumers paid, after discounts and promotions, rose 2.5% from March, more than double the typical 1.1% increase over those two months in recent years, Cox Automotive’s Kelley Blue Book showed.

In the past decade, the only larger such increase was in April 2020, when prices rose 2.7% during pandemic-related factory shutdowns.

Still, consumer demand has risen over the past few months as buyers rush to get ahead of any tariff-related price increases, dealers and auto executives have said. That has translated into new-car shoppers shelling out more on average at dealerships, according to Cox.

A report by Reuters, quoting a notice sent to dealers last week, said Ford was charging more for its Mexico-built products. Some models of the Mustang Mach-E electric SUV, Maverick pickup and Bronco Sport will cost as much as $2,000 more.

 

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Wholesale used-vehicle prices rose in April, according to Cox’s Manheim Used Vehicle Value Index, which increased 4.9% to 208.2 from a year ago, up 2.7% from March.

According to the report, tech chaos at Newark Liberty Airport saw a spike in cancellations and delays in recent weeks, disrupting one of the busiest airports in the United States.

Sales incentives on new cars as a percentage of transaction prices, a measure of discounts and promotions, fell to the lowest since the summer of 2024, Cox said.