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AL CIRCLE

US auto sales climb as buyers rush to beat tariffs

EDITED BY : 2MINS READ

US automakers Ford and General Motors reported a sharp rise in second-quarter vehicle sales, driven by a consumer rush to buy cars ahead of newly imposed tariffs on imported vehicles and parts.

US auto sales climb as buyers rush to beat tariffs

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General Motors reported a 7.3 per cent rise in vehicle deliveries, reaching 746,588 units, driven by solid demand for pickup trucks, SUVs, and budget-friendly models. Ford outpaced GM with a 14.2 per cent sales increase, totalling 612,095 units, boosted by a widely popular employee pricing offer.

The sales bump coincided with growing consumer concerns over price hikes due to the US government's 25 per cent tariffs on imported finished vehicles (effective April) and auto parts (effective May).

However, White House officials introduced a two-year grace period and clarified that automakers would not be subjected to overlapping tariffs from the existing 25 percent duties on imported steel and aluminium.

From an aluminium industry perspective, the surge is also tied to rising material costs.

Vehicles such as the Ford F-150 built with a high-strength aluminium alloy body are particularly affected by tariffs on imported aluminium and auto parts. With the aluminium-intensive F-150 being a key contributor to Ford’s sales, the industry is bracing for long-term cost implications as tariff measures begin to take full effect.

Dealers across the US reported heavy foot traffic in March and April as customers aimed to lock in purchases before possible price spikes, though demand began to soften in May.

Other automakers see mixed Q2 results

Toyota reported a 7.2 per cent increase in Q2 sales to 666,470 units, with strong performance from the Camry and Tacoma models. Honda, Kia, and Hyundai also posted gains between 5 per cent and 10 per cent.

However, not all automakers saw positive growth Nissan reported a 6.5 per cent decline to 221,441 units, while Stellantis was estimated by Edmunds to post a 12.8 per cent drop to just over 300,000 vehicles.

 

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EDITED BY : 2MINS READ

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