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The US auto industry had been expecting a slow march, according to Cox Automotive,

but instead saw the hottest new car sales in four years,

as buyers rushed out to replace their aging cars before Donald Trump's tariffs on imported cars and car parts,

as well as those on imported aluminium and steel kicked in, as these tariffs are expected

to drive up the prices of both new and used cars this year.

While Trump announced a 90-day pause on many of his Liberation Day tariffs, the hold

does not apply to the imported car tariffs.

On top of that, it's difficult to say how hard the huge tariffs on Chinese imports will hit

the auto industry, as a lot depends on how the Chinese content of imported car parts is treated by US

customs.

The economists at Cox Automotive updated their sales predictions after the auto tariff announcement

came out in March, saying that the rush to buy new cars might continue into May, or

until whenever the inventory the dealers

built up before the tariffs is drawn down by anxious consumers. They say in their report

that they expect new car prices to rise dramatically by the second half of the year, slowing

sales noticeably. The New York Times reports that demand has

been particularly high for Japanese brands like Honda, Subaru and Nissan, as buyers assume that

they're all imported. All three Japanese companies, however, have factories in the United States,

...