Overview

• The average transaction price for new vehicles rose 2.5% in April, the largest monthly increase in five years, reaching $48,699 according to Cox Automotive data.
• Dealers have shielded consumers from immediate tariff impacts by drawing down pre-tariff inventory and offering incentives, though stock levels are shrinking rapidly.
• Automakers like Ford have implemented selective price increases but have not passed on the full cost of the 25% tariffs on imported vehicles and parts to consumers yet.
• Major automakers, including Toyota and Honda, project billions in additional costs due to tariffs, with Honda forecasting a 70% profit reduction for the fiscal year.
• Nissan reported a $4.5 billion annual loss and cited ongoing tariff uncertainty as a major challenge, prompting further cost-cutting measures and supply-chain reevaluations.