Carmakers See Sales Jump as Buyers Race to Beat Tariff Hikes

Ahead of anticipated U.S. auto tariffs, car manufacturers are reporting a surge in sales from buyers looking to avoid the higher costs that will likely accompany the levies. 

According to The New York Times, Ford saw a 19% rise in sales at dealerships in March, while General Motors reported a 17% year-over-year bump in first quarter sales. GM also saw its sales for battery-powered vehicles double year-over-year for the quarter, Toyota's EV and hybrid sales rose by 44% in March, and Ford's hybrid sales increased by 33% over the course of Q1. 

President Donald Trump's 25% tariffs on all imported vehicles take effect on April 3, and are expected to expand to include imported auto parts a month later. Roughly half of the 16 million cars Americans bought in 2024 were imported, according to the White House, with Goldman Sachs estimating that the levies could raise prices for new foreign-made cars by up to $15,000, while U.S.-made cars with foreign parts could cost an additional $8,000. Supply chain data company Altana estimates that Trump's auto part tariffs alone could impact $24.8 billion worth of general car components, including $12.8 billion in brake parts and $7.9 billion in piston engines.