U.S. Vehicle Sales Climb as Consumers Rush to Preempt Tariff Increases

Amid a pending surge in tariff-related costs, Akio Miller and his wife are speeding up their search for an SUV in the suburbs of Detroit. They're currently trying out a new Hyundai, bearing in mind that prices could rise soon.

"The tariffs and fluctuating car prices prompted us to think that acting sooner might be advantageous," Miller shared with CBS News.

Miller believes that delaying their purchase could lead to higher prices.

"Vehicles are already costly," he added. "With tariff taxes adding up, they could soon be beyond what we can afford."

The Millers aren't alone in feeling this rush. March saw a significant increase in new car purchases across the U.S., with a rise of over 17% from February and an almost 12% increase compared to the same month last year, according to a report by Cox Automotive. Alongside, dealership stocks of vehicles unaffected by tariffs shrunk by 10%.

Conversely, S&P Global Mobility projected earlier this month that continuation of tariffs would result in a 700,000 unit drop in U.S. vehicle sales this year, potentially falling by another 1.2 million by 2026.

Economist Patrick Anderson explained to CBS News, "A considerable portion of March's sales came from buyers attempting to beat tariffs, leading to likely reduced sales later as these individuals had moved forward their purchase timelines."

New import tariffs on cars and parts took effect on April 3. President Trump indicated plans to mitigate the impact on U.S. manufacturers by imposing 25% tariffs on steel and aluminum.

Hyundai vehicles, like the Ioniq 6 sedan with a $51,000 price tag at George Glassman's dealership, are primarily made from parts imported from South Korea, which could face price hikes if tariffs persist.

Glassman noted, "There's no doubt prices will rise; the question is by how much."

This uncertainty resulted in a record month of sales for Glassman's various dealerships in suburban Detroit.

"We increased our stock in anticipation of rising costs," Glassman remarked to CBS News.

Glassman warns that once tariffs settle in, the uptick in vehicle prices will be felt immediately.

"There’s no question about it," he concluded.