đ U.S. Auto Sales Rise 4.8% in Q1 2025 Amid Tariff Rush
U.S. auto sales rose 4.8% in the first quarter of 2025, driven by a rush of buyers aiming to beat the clock on President Donald Trumpâs upcoming 25% tariffs on auto imports, set to begin April 3. Leading the pack, General Motors reported a 17% jump in sales, boosted by demand for its affordable crossover SUVs like the Chevrolet Trax, built in South Korea. In contrast, Ford saw a 1.3% decline, citing model discontinuations and fleet timing issues. Sales of electric vehicles also grew by 19.2%, though Tesla is expected to post a decline amid waning demand and political backlash surrounding CEO Elon Musk. Asian automakers â including Hyundai, Mazda, and Honda â all saw strong quarterly performance, with Hyundai North America CEO Randy Parker noting, âThe last week⌠was by far the best weekend that Iâve seen in a very long time,â as customers rushed to buy before the tariffs kick in. Analysts warn that once the tariffs take effect, new vehicle prices could rise sharply, reducing the availability of lower-cost imports and pushing the average price tag well beyond $50,000. This could dampen consumer demand in the months ahead, with Cox Automotive warning of inflationary pressure and potential sales slowdowns through the rest of 2025.