Car sales in the United States: Automakers see April sales boost amid fears of Trump tariffs
Car buyers are buying vehicles early due to potential price increases for Trump tariffs. However, analysts warn that the boost could be temporary.
Automobile sales in the United States increased in April due to fears of new import tariffs imposed by president Donald Trump. Ford, Hyundai, and Kia reported double-digit year-over-year increases due to early vehicle purchases.
The 25% tariff on imported cars prompted people to buy early, fearing future price increases. Experts indicate that this rebound may be temporary, as the market showed signs of slowing toward the end of the month.
The initial momentum weakens after a strong April sales
According to Jonathan Smoke, chief economist at Cox Automotive, the automotive market is undergoing a transition to an environment with higher import taxes. The immediate reaction was a sharp increase in demand, but the pace began to slow in the second half of April as vehicle inventories dwindled and prices began to rise.
Thomas King, president of JD Power's data division, explained that April's results were dominated by the perception of short-term price increases. However, current conditions, such as rising costs and inventory shortages, could limit sales in the coming weeks.
Ford, Hyundai and Kia reported increased sales of their vehicles due to customer fears of subsequent price increases. Photo: The Guardian
Brands take advantage of the boom while the tariffs last
Ford recorded a 16% increase in April sales compared to the same month in 2024, thanks to its "employee pricing" program, launched after the tariffs went into effect. The company announced it will extend this initiative through the Fourth of July weekend to maintain demand.
Hyundai and Kia also benefited from the uncertain climate. Hyundai reported a 19% increase in sales, while Kia, which operates independently in the United States, saw a 14% increase. Toyota reported 10% year-over-year growth, and General Motors confirmed a 20% increase in April, although it officially releases its figures on a quarterly basis.
