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Tariffs will lead to 2 million fewer auto sales in US this year, auto advisory firm forecasts

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U.S. and Canada auto sales could decline by 1.8 million vehicles this year and be stagnant over the next decade if the global trade war escalates, a Detroit-area automotive advisory firm forecasts.
According to a report by AutoForecast Solutions (AFS) released on April 7, 2025, the imposition of new tariffs on imported vehicles and parts is expected to result in approximately 2 million fewer auto sales in the United States for the current year. The advisory firm attributes this decline to increased costs for consumers and potential retaliatory measures from other countries, which could disrupt global supply chains. AFS also noted that the tariffs could lead to a shift in production strategies among automakers, potentially prompting them to relocate manufacturing facilities to avoid the new levies.

Read the Full Reuters Article at:
[ https://www.reuters.com/business/autos-transportation/tariffs-will-lead-2-million-fewer-auto-sales-us-this-year-auto-advisory-firm-2025-04-07/ ]