Analysts See Turbulent Year Ahead for Auto Market as Tariffs Loom

A 25-percent increase in cars and parts made in Canada and Mexico would likely increase prices on new and used vehicles, according to Cox Automotive.

A car hauler heads to cross the Ambassador Bridge between Windsor, Canada, and Detroit, Mich., on the first day of President Donald Trump's new 25 percent tariffs on goods from Canada and Mexico on March 4, 2025. Bill Pugliano/Getty Images

Looming tariffs on auto imports and a potential trade war are expected to lead to higher prices for consumers and tighter inventories of new and used vehicles in the United States, according to Cox Automotive’s 2025 market forecast.

On March 26, Cox Automotive industry analysts gave a media presentation highlighting first-quarter market insights and performance expectations for the year ahead.