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US second-quarter auto sales set to rise, tariffs may drive up prices
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US second-quarter auto sales set to rise, tariffs may drive up prices
Jul 1, 2025 3:55 AM

July 1 (Reuters) - U.S. auto sales are set to rise in

the second quarter aided by sustained demand, but industry

experts forecast President Donald Trump's tariffs to pressure

prices in the months ahead.

Market research firm Cox Automotive expects U.S. new-vehicle

sales volume to climb about 1.7% to 4.18 million units in the

second quarter from a year ago.

"New vehicle affordability concerns are expected to worsen

in the second half of the year under potential upward pricing

adjustments," said Chris Hopson, principal analyst at S&P Global

Mobility.

General Motors ( GM ) is expected to hold its top spot in

the quarter, followed by Toyota Motor's ( TM ) North America

unit and Ford, according to Cox.

President Trump's move to levy tariffs on U.S. auto imports

initially pulled forward demand from price-sensitive buyers, but

that boost is expected to fade as higher prices take hold.

"Much of the pull-ahead demand that fired up sales in April

and May has now been satiated, so consumer demand is expected to

be weaker in the coming months," said Charlie Chesbrough, senior

economist at Cox Automotive.

Cox also expects Tesla to report a near 21% drop in

second-quarter vehicle sales from last year.

The tariffs will majorly hit lower-cost imported models,

such as Ford's compact Maverick pickup truck and GM's affordable

Chevrolet Trax crossover, denting affordability concerns as the

average new-vehicle price nears $50,000.

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