STORY: U.S. auto sales jumped during the first quarter as the prospect of big import tariffs loomed over the market.
Figures out Tuesday showed General Motors was the biggest winner, with a 17% surge in sales.
It saw strong demand for affordable crossovers like its Chevrolet Trax SUV – which is made in South Korea.
There were gains too for big Asian names, including Hyundai, Mazda and Honda.
Hyundai Motor North America boss Randy Parker said the past weekend was the best he’d known for a very long time.
He credited shoppers rushing to beat the tariffs.
Now Donald Trump’s new 25% levy on imported cars will kick in from April 3.
“And this is very modest. What we’re going to be doing is a 25% on all cars that are not made in the United States. If they’re made in the United States there’s absolutely no tariff.”
Analysts say that looks certain to drive a big spike in prices, and a drop in sales as a result.
The effect could be most pronounced for lower-cost vehicles, where profit margins are tighter.
On Tuesday, Mercedes had to deny reports by Bloomberg that it would halt all imports of its low-end models.
The fear is that some Americans will be priced out of the market altogether, with the average selling price of a new car already nearing $50,000.
If that drives buyers to look for used vehicles instead, then secondhand prices could also jump.
Overall, Tuesday’s figures show U.S. new vehicle sales for the quarter hit 3.91 million units – or almost 5% up on this time last year.
