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Piero Facchin
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The 25% Tariffs Imposed by the Trump Administration on Vehicles Could Lead to a Drop of 2 Million Car Sales in the United States and Canada in 2025
Piero Facchin
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According to an analysis by Telemetry, a Detroit-based automotive consulting firm, if these tariffs remain in place until 2035, annual passenger car sales could drop by seven million units, compared to more than 20 million currently. In a scenario without trade conflict, they would reach 24.6 million units.
The rise in prices is prompting many buyers to postpone replacing their vehicles. Some manufacturers have already suspended their shipments to ports or refocused their production within the United States. Strategies vary: Ford is offering temporary discounts, while Hyundai is maintaining its prices but has dropped its free maintenance program.
This situation could cause a shift toward the used vehicle market, with upward pressure on their prices, as was observed during the COVID-19 pandemic.
Piero Facchin
