When President Trump unveiled his tariff plans for cars and cars parts in April, he said, “You are falling down prices.” Unfortunately, the truth is different. In the first half of 2025, a new study by car.com on dealer inventory shows that the supply of less than 000 new cars is decreasing.
The study notes that the under -$ 30,000 segment is the highest tax, as 92 % of the models within it are imported. Only two, Honda Civic and Toyota Corolla are built in the United States, and yet, some Corolla and urban shapes come from outside the United States. In the case of dealer inventory, this class saw a growth of 3.9 % during the year (YOY), but it is a 5.6 % overall increase for the new car inventory.
This research also shows that dealers had stock up on inventory before the revenue began in April, and sales increased in March and April, increased by 3.9 % compared to the first half of 2024. This has had some interesting effects. Before the collision of revenue, there was a high supply of vehicles used by consumers wishing to get into a new car, and these cars began to sell rapidly. Used car prices dropped slightly in the first quarter of 2025, but in the second quarter increased by 1.6 % YOY.
Now, the supply of pre -tariff new cars is decreasing, and at the same time, the study says we should expect the price increase. So far this year, the average new car prices have only increased by $ 97, but cars from the UK have received $ 10,000 more expensive. In the meantime, the European Union’s cars saw an average of about $ 2500. Chinese, Canada and Korean cars saw a decline in prices, as cars built from the United States on an average of $ 200.
For the second half of 2025, we can expect higher prices and less demand. “The pace of sales and inventory movement will depend on the scope of the tax, which is likely to adjust the production to align with a small, high price sensitive buyer pool, Car.com said in the report.
Cars.com has some more interesting insights. It surveyed EV buyers, and 53 % of respondents said that federal tax credit is a main reason to buy their cars. For the new EV, the credit for 7,500 and for the EVs used after September, with both 000 4,000 credit, it will have a huge impact on the EV cheaper. The study states that maintaining a new 28 -month -old new EV inventory growth can be “difficult”. Cars.com also believes that the market for used EVs is coming out.
The study also notes that carmakers are increasing the production of lower and high vehicle clippings, which has a slight reduction in middle -level clippings. The lower terms are clearly appealing to sensitive buyers at high prices, especially in the world of rising prices as a whole, while more trams are more profitable. Changing the model mix looks as if it can eliminate some of the effects of revenue.
