The average price paid for new cars in the US edged down 0.2% to $48,334 in May, despite higher prices requested by automakers. The dip comes as 25% tariffs on imported cars and car parts took effect in April, but most cars sold in May arrived before the tariffs.
Automakers expect the tariffs to cost them $5 billion by the end of this year, with General Motors stating its concerns. However, many dealerships are slow to announce price increases due to a recent drop in demand for new car sales. Low consumer confidence and high interest rates have led to fewer Americans considering buying new cars.
A survey by The Conference Board found that the demand for car sales has softened. As a result, automakers may not raise prices significantly throughout the year. Despite this, 25% tariffs on imported auto parts took effect in May, affecting every car built at US auto plants.
Source: https://edition.cnn.com/2025/06/06/business/car-prices-steady-despite-tariffs-cost