(Reuters) -U.S. auto sales are set to rise in the second quarter aided by sustained demand, but industry experts forecast President Donald Trump’s tariffs to pressure prices in the months ahead.
Market research firm Cox Automotive expects U.S. new-vehicle sales volume to climb about 1.7% to 4.18 million units in the second quarter from a year ago.
“New vehicle affordability concerns are expected to worsen in the second half of the year under potential upward pricing adjustments,” said Chris Hopson, principal analyst at S&P Global Mobility.
General Motors is expected to hold its top spot in the quarter, followed by Toyota Motor’s North America unit and Ford, according to Cox.
President Trump’s move to levy tariffs on U.S. auto imports initially pulled forward demand from price-sensitive buyers, but that boost is expected to fade as higher prices take hold.
“Much of the pull-ahead demand that fired up sales in April and May has now been satiated, so consumer demand is expected to be weaker in the coming months,” said Charlie Chesbrough, senior economist at Cox Automotive.
Cox also expects Tesla to report a near 21% drop in second-quarter vehicle sales from last year.
The tariffs will majorly hit lower-cost imported models, such as Ford’s compact Maverick pickup truck and GM’s affordable Chevrolet Trax crossover, denting affordability concerns as the average new-vehicle price nears $50,000.
(Reporting by Nathan Gomes in Bengaluru; Editing by Alan Barona)
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