Big Auto Price Hike Incoming
The Budget Lab at Yale forecasts auto prices will rise 13.5%.
By
April 9, 2025
There’s a small window to buy new cars before tariffs increase costs.
Announced last Wednesday, Trump’s 25% tariff on autos and auto parts not produced in the U.S. will begin on April 2nd.
The Budget Lab at Yale forecasts auto prices will rise 13.5%, or about $6,400 on the average new car.
Early data indicates car showrooms will soon be packed as buyers rush to beat price hikes. According to S&P Global Mobility, in March 2025, U.S. auto sales are estimated to be up 19% over the prior month and 15% from March 2024.
Buying a new car will soon be out of reach for most consumers.
