US Auto Sales Expected to Experience A Modest Increase in the First Quarter Amid Tariff Concerns Leading to Uncertainty
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It is anticipated that U.S. auto sales will slightly increase in the first quarter of the year due to consistent demand. Research data from automotive companies will reveal this information on Tuesday amidst concerns over the impact of President Donald Trump's recent tariffs.

Cox Automotive has projected a 0.6% rise in U.S. new vehicle sales volume to 3.79 million units in the first quarter compared to the previous year. Jessica Caldwell, head of insights at automotive data provider Edmunds, highlighted that the looming automotive tariffs effective from April 2 may have influenced early vehicle purchases in Q1.

General Motors is likely to maintain its leading position in the quarter with strong sales of pickup trucks and SUVs, followed by Toyota Motor's North America unit and Ford. Tesla is expected to report a decline in first-quarter vehicle deliveries.

President Trump's imposition of tariffs on U.S. car imports is predicted to impact consumer sentiment and prompt a reassessment of buying decisions. This move may also limit the availability of more affordable imported vehicles in the market, like Ford's compact Maverick pickup truck, exacerbating the challenge of rising average new-vehicle prices reaching nearly $50,000.

Cox stated that potential inflation resulting from the new tariffs at U.S. borders could hinder new-vehicle sales in 2025. Caldwell emphasized that industry challenges are likely to persist in the following quarters due to tariffs, with diminishing discounts on vehicles.

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