Overview

• The Trump administration's 25% tariff on imported vehicles, effective April 3, has led to a 2.5% month-over-month increase in new vehicle transaction prices, according to Cox Automotive.
• April Consumer Price Index (CPI) data showed no change in new car prices, highlighting a divergence between transaction price trends and official inflation metrics.
• Dealerships leveraged pre-tariff inventory to shield consumers from immediate price hikes, though inventory levels are now declining across the industry.
• Ford announced midyear price increases ranging from $600 to $2,000 on select models, citing the combined impact of tariffs and routine pricing adjustments.
• Toyota and Honda project substantial tariff-related costs, with Toyota estimating $1.2 billion for April and May and Honda forecasting $4.4 billion for the fiscal year.