Automakers have been absorbing billions in added expenses since Trump’s tariffs took effect in April, but car prices have not skyrocketed as predicted. Prices rose less than 1% on average from mid-March to mid-August, with only modest increases for 2026 models, despite looming pressure to raise prices.

General Motors faces up to $5 billion in gross tariff costs this year, while Ford expects a $3 billion hit. Car companies are exploring options to offset these costs internally or through suppliers. American consumers may resist significant price hikes after a 30% increase in average transaction prices since 2019.

Hyundai is maintaining pricing to stay competitive, even as tariff costs erode profits. Tariff-related costs could add nearly $2,300 per vehicle annually, prompting carmakers like Hyundai to resist price hikes. Companies may gradually raise prices to protect their bottom lines, despite potential drops in U.S. vehicle sales.

Automakers are expected to gradually increase MSRPs and focus on higher profit margin models. By resisting price hikes, companies avoid backlash from Trump. Some models have seen price increases, but automakers are subtly passing on tariff costs through destination fee increases. Competitive pricing remains a priority to retain customers and market share.

Read more at Yahoo Finance: Automakers have resisted raising car prices because of tariffs. That might not last