Tariffs Made Car Buyers Hit The Gas

Core Insights - More than a third of car buyers adjusted their purchase plans due to tariffs, with 36% indicating that tariffs influenced their buying decisions, and 87% of those buyers made their purchases sooner than originally planned [1][7] - The survey conducted by J.D. Power highlights the significant impact of tariffs on consumer behavior and spending patterns in the automotive sector [5][7] Impact on Prices - 15% of respondents reported paying more than they had initially planned for their vehicle purchases, indicating a direct effect of tariffs on pricing [2] - Although tariffs have not yet significantly increased consumer prices, it is anticipated that manufacturers will begin passing on costs to consumers, with predictions of a 4% to 8% rise in vehicle prices for 2026 models [4] Economic Implications - The shift in buying habits among car buyers due to tariffs reflects broader changes in consumer spending patterns, which can have extensive repercussions for the U.S. economy [3][5] - Economists note that tariffs have contributed to increased prices and reduced job creation across various industries, showcasing the widespread economic effects of these trade policies [5]