Car shoppers hoping to beat the tariffs imposed by President Donald Trump are facing a harsh reality — the trade war is already raising prices on the U.S. auto market, often in subtle ways barely noticed by consumers, according to Bloomberg.
Even if a vehicle’s sticker price hasn’t changed yet, automakers are quietly reducing incentives and limiting deals, quietly adding hundreds of dollars to monthly lease payments. Many have also raised destination charges — the fee every buyer pays — by $40 to $400, per data from Edmunds.
These stealth price increases help manufacturers offset the 25% tariffs on imported vehicles without provoking consumer backlash, even as tariffed vehicles arrive at U.S. dealerships. Drivers are already expressing frustration online — reminiscent of the backlash Walmart faced when Trump’s tariffs led to price hikes.
U.S. auto tariffs are adding hundreds to buyers’ bills – “It’s not always obvious at the pump, but it’s felt at the showroom.” pic.twitter.com/xyzImage
— Reuters (@Reuters) June 6, 2025
Indeed, the average new car sale rose by 2.5% in April—the largest April jump in five years—bringing the transaction price to around $48,700, per Kelley Blue Book. That’s nearly double the typical 1.1% increase.
Meanwhile, a recent Reuters report shows U.S. auto sales dropped sharply in May as a rush to beat tariff hikes faded last week. Consumers are holding off, unsure whether prices will stabilize or climb even further.
In context: steel and aluminum tariffs doubled to 50% this week, putting even greater pressure on vehicle production costs — analysts say it may add up to $7,000 per car from materials alone The Washington Post. U.S. Fed officials caution that these policies have a 50‑50 chance of triggering persistent inflation Reuters.
Experts warn that smaller incentives, rising fees, and tariff-linked material surcharges could add thousands of dollars to the cost of a new car — even before tariffs hit the sticker. They urge buyers to check incentives carefully, act before further price hikes, and stay informed about the evolving trade policies.