From Yahoo Finance: 2025-04-02 09:38:00

Automakers are strategizing to pass on Trump’s 25% tariffs, with Toyota facing potential price hikes due to low inventory. Pre-tariff cars are in high demand, with Ford and Hyundai boasting larger supplies. The race is on to get vehicles through ports before April 3 to avoid price spikes.

The Trump administration’s tariffs on auto parts will lead to price hikes, affecting 40% to 80% of U.S.-made cars. Automakers are in talks to spread out tariff costs, increasing consumer monthly payments. Consumers may also face higher car insurance premiums, pushing more into the used car market.

Automakers with pre-tariff inventory have some breathing room, but dealers worry about long-term impacts. Luxury producers plan to pass on extra costs, while Mercedes-Benz is building up U.S. inventory ahead of tariffs. Manufacturers with low inventories may need to raise prices immediately for profitability.

Toyota’s lean inventories make price hikes urgent, potentially starting in May. The weak yen may allow Toyota to delay price increases and take market share from U.S. rivals. Individual models like Honda CR-V and Chevy Equinox are most impacted by tariffs, with a rush likely to deplete supply quickly.



Read more at Yahoo Finance: Pre-tariff cars at US dealer lots a buffer against price hikes