The U.S. auto industry is facing mounting pressure from newly imposed tariffs under the Trump administration, with industry leaders and consumers warning of significant impacts on affordability and sales. Although March saw a spike in vehicle purchases as buyers rushed to beat the tariff deadline, experts predict a sharp decline in demand moving forward.
Mark Schienberg, chairman of the Greater New York Automobile Dealers Association, emphasized the challenge: “Tariffs are hitting affordability hard. Since cars are assembled with parts sourced globally, both domestic and imported vehicles will be affected.”
Laura Perrotta, president of the New Jersey Coalition of Automobile Retailers, echoed the concerns. “Once the tariffs kick in, we expect a major drop-off in sales,” she said at the 2025 New York International Auto Show. “Sticker prices could rise by $2,000 to $10,000 per vehicle.”
Analysts at S&P Global Mobility recently downgraded 2025 U.S. sales forecasts for cars and light trucks by 700,000 units, with additional cuts expected in 2026 and 2027. The market uncertainty has dealers and consumers alike bracing for a downturn.
Dealers on the ground are already witnessing the early signs. Chris, a Chevrolet product specialist, confirmed a surge in March sales but noted looming price hikes due to tariffs. “We haven’t raised prices yet, but it’s only a matter of time,” he said. “We rely heavily on global suppliers, including many from China.”
Luxury automaker Porsche has maintained stable sales for now, according to product specialist Dillon Newell, but warned that rising parts costs may soon force them to adjust pricing.
Tariffs Hit Consumers Hard
For buyers, the tariffs translate to higher costs and difficult choices. Manuel Cintron from Philadelphia rushed to purchase a Japanese-made Lexus IS 500 before the tariffs were announced. “If it were just two or three percent, I could live with it. But 25 percent is huge,” he said. He had to settle for a color he didn’t prefer, unwilling to wait months and risk paying more.
Russell Brodin, a 28-year-old transportation engineer from Connecticut, summed up the broader issue. “Affordability is a huge problem. You used to get base models for $30,000, but anything decent now starts at $40,000 or more. I’m still paying off student loans—owning a house or a new car isn’t realistic right now.”
Brodin said the market could see a resurgence in used car demand. “I bought my current car for $5,000 to $6,000 off Facebook Marketplace. I think more people will do the same. It’ll take at least three to four years for new car sales to bounce back.”
Other attendees at the auto show shared similar worries. “Prices haven’t reflected the full impact of the tariffs yet,” said Brandon Wilson of Connecticut. “But when they do, it’s going to be dramatic.”
Preston, a visitor from New York planning to buy a Kia, added: “No one really knows how the tariffs will hit each brand, but we’ll all feel it. We just have to wait and see.”
With car prices set to rise and consumers increasingly wary, the road ahead for the U.S. auto industry looks uncertain. Tariffs may be aimed at protecting domestic interests, but for now, they’re fueling anxiety in showrooms across the country.
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