U.S. auto sales rose in the second quarter as demand for gasoline-powered vehicles remained strong, but the industry is preparing for slower sales in the coming months as new tariffs are expected to push prices higher.
General Motors reported a 7% rise in sales, helped by demand for lower-cost crossover SUVs like the Chevrolet Trax. Ford Motor posted a 14.2% increase, while Toyota’s North American unit saw a 7.2% gain.
Hyundai Motor also recorded a 10% year-over-year rise in U.S. sales.
President Donald Trump’s new tariffs initially boosted sales by encouraging price-sensitive buyers to act early. That effect is now expected to fade as higher prices begin to affect consumer decisions.
The tariffs are likely to impact affordable imported models such as Ford’s Maverick pickup and GM’s Trax, adding pressure as the average price of a new vehicle nears $50,000.
U.S. new vehicle sales in June totalled about 1.25 million units, with a seasonally adjusted annual rate of 15.34 million, according to Wards Intelligence.
Executives say the second half of the year will be more difficult due to high interest rates and political uncertainty. Some buyers are already shifting to the used vehicle market in response to rising prices, making affordability a growing concern.
