U.S. new-vehicle prices surged in April, data released on Monday showed, a sign that the effects of President Donald Trump’s auto-tariff measures are rippling through the car market.
The average price consumers paid, after discounts and promotions, rose 2.5% from March, more than double the typical 1.1% increase over those two months in recent years, Cox Automotive’s Kelley Blue Book showed. In the past decade, the only larger such increase was in April 2020, when prices rose 2.7% during pandemic-related factory shutdowns.
Automakers are adjusting to 25% U.S. tariffs on vehicle imports from many countries, including major trading partners Mexico and Canada, but few have raised sticker prices. Some, like Hyundai, Ford and Jeep-maker Stellantis, have even rolled out deals to reassure buyers and keep sales flowing.
Still, consumer demand has risen over the past few months as buyers rush to get ahead of any tariff-related price increases, dealers and auto executives have said. That has translated into new-car shoppers shelling out more on average at dealerships, according to Cox. More here
