American consumers are adjusting their car-buying timelines in response to the anticipated effects of former President Donald Trump’s proposed 25% tariff on auto imports, according to a new report from car-buying platform Edmunds.
The survey, released Friday, found that 37% of new-car shoppers are accelerating their purchases to avoid expected price hikes, while 25% plan to delay their purchase decisions until market impacts become clearer. In total, 75% of respondents said they believe tariffs will play a role in their next vehicle purchase, with 44% calling it a definite factor.
While the tariff has yet to cause major disruption in the auto market, Edmunds analysts say uncertainty is already influencing buyer behavior.
“While there have been some targeted moves—such as automakers adjusting suggested retail pricing on select models or limiting availability of certain vehicles—these actions haven’t yet translated into widespread disruptions,” said Jessica Caldwell, assistant vice president of insights at Edmunds.
So far, the primary response has been a short-term boost in vehicle sales. Anticipating future price increases, many automakers have worked to clear inventory ahead of the potential cost impact. Average transaction prices for new vehicles rose only 2.2% year-over-year in April, a rate in line with normal seasonal trends, while sales volumes have increased, according to monthly automaker reports cited by CNBC.
Despite the current market stability, analysts warn that price hikes are likely once inventories shrink and tariff costs begin to flow through the supply chain. Many automakers are holding off on raising prices across the board but acknowledge that margins leave little room to absorb the full impact of a 25% duty.
“It’s a waiting game right now,” said Caldwell. “Nobody wants to be the first to raise prices significantly, but no one can afford to absorb these costs forever.”