Tariffs cause US new vehicle prices to spike in April

While US President Donald Trump’s 25% import tariff policies are designed to protect domestic auto manufacturing, consumers are unlikely to experience price drops any time soon. In fact, some analysts contend that vehicles will inevitably become more expensive, regardless of whether OEMs do nothing or completely relocate their assembly facilities and supply chain.

A report published on 12 May 2025 by Cox Automotive’s Kelley Blue Book indicates this reality might already be manifesting. Between March and April, the average new vehicle transaction price was US$48,699—an increase of 2.5%, more than double the expected 1.1% during this period. To illustrate the significance of this spike, the only larger increase over the past decade was 2.7% during April 2020, the onset of the COVID-19 pandemic.