US consumers sprinted to buy cars ahead of auto tariffs
New data keeps rolling in that shows the extent of US consumers’ rush to scoop up a cars before President Trump’s 25% auto tariff sends prices up. The Census Bureau on Wednesday estimated that retail sales at motor vehicle and parts dealers — adjusted for seasonality but not price changes — rose to nearly $144 billion in March, up 8.8% from the same month last year.
Auto dealer sales drove overall retail sales to their largest increase (1.4%) since January 2023.
That figure adds to Kelley Blue Book estimates from earlier this month that sales of new vehicles spiked 30% in March from February for the highest volume total in about four years. Ford said its sales at dealerships swelled 19% in March, while GM’s first-quarter sales surged 17%. Volkswagen reported a 6% US boost.
Automakers are all handling tariffs differently, but some (mostly those with beefier inventory levels) are offering short-term discounts to pull in buyers.
“All signs point to higher prices this summer, as existing ‘pre-tariff’ inventory is sold down to be eventually replaced with ‘tariffed’ inventory,” Cox Automotive analyst Erin Keating said.
