US auto sales have plummeted following President Donald Trump’s tariffs on imported vehicles, forcing carmakers to rethink pricing strategies. The annualized automotive selling rate likely dropped to 15 million in June, marking the slowest pace in the past 12 months.
Analysts warn that the worst is yet to come as affordability worsens and production declines are expected to keep supply in balance. The average new car cost in June was up only 1% from a year earlier, but broader price rises have been driven by pandemic-related supply chain issues and inflation.
Industry experts predict that automakers will pass on 80% of the tariff costs to consumers, raising vehicle prices by nearly $2,000 per car. The Trump administration’s 25% tariffs on imported vehicles and key auto parts are expected to cause broader supply chain disruptions and consumer affordability concerns.
The US auto market is showing signs of significant strain as consumers face rising tariffs, soaring prices, and deepening economic uncertainty. The slowdown follows a brief surge in spring sales, which has now subsided. Industry researcher JD Power notes that the second-quarter sales figure showed a modest 2.5% increase from the prior year, but this momentum has now “subsided.”
Source: https://nypost.com/2025/07/01/business/car-sales-plummet-following-pre-tariffs-panic-buying-the-party-is-over