Dishing the Scoop: Mary Barra Dishes on Trump's Tariffs and GM's Compliance Strategy
Used car prices surged to their peak level since 2023, leaving consumers strapped due to increased auto tariffs.
Mary Barra, the big cheese at General Motors, dishes the deets on what she anticipates from the new auto tariffs and how the company plans to toe the line with the Trump administration's guidance during a smackdown conversation on 'Mornings with Maria.'
Pre-owned car buyers are catching a raw deal as the auto market shuffles to fit President Donnie T's 25% tariffs on auto imports.
Pre-owned vehicle prices surged in April, with the Manheim Used Vehicle Index peaking at 208.2 - a whopping 2.7% increase from March and a striking 4.9% jump compared to last year. This is the highest reading for the index since October 2023.
"We predicted a powerful price surge in response to the tariffs, and bam! That's precisely what we got," said Jeremy Robb, senior director of economic and industry insights at Cox Automotive. "As the month tackled on, weekly trends indicated higher values, but those gains slowed down week after week."
"Used retail sales keep steaming along, and wholesale stock is a smidge leaner, which means we'll likely see reduced depreciation over Q2. However, as we trundle into the second half of the year, the auto market might slip into a slowdown as robust demand probably hoisted some sales in March and April as buyers tried to swoop in ahead of anticipated higher prices due to tariffs," Robb added.
*WITH TRUMP SOFTENING ON AUTO TARIFFS, MERCEDES IS GRIPPING ON TO ALABAMA*
Pre-owned car prices skyrocketed in April by the most since '23 due to tariffs, according to the report. (Jim Watson/AFP via Getty Images / Getty Images)
Retail sales of pre-owned vehicles in April plummeted 1.7% from March, but were a staggering 13% higher compared to the previous year. In the last four weeks, the average pre-owned listing price for a vehicle rose by 2%, the report found.
Sales of new vehicles were 11.1% higher in April compared to last year as worries over tariffs causing higher prices later in the year sparked a sales spree, even though the volume dipped 8% from an even stronger March.
*TRUMP'S 25% AUTO IMPORT TARIFFS: THESE ARE THE MAJOR PLAYERS GETTING HIT THE HARDEST*
Tariffs can jack up the prices for pre-owned cars by constricting the supply of new cars and jacking up the cost of those vehicles. (FOX Business / Fox News)
Earlier this year, Trump called for 25% tariffs on imported vehicles that were due to take effect on April 2, while other 25% tariffs on imported auto parts were slated to hit on May 3.
On April 29, the president signed an executive order that tweaked the auto tariffs by offering offsets for a chunk of tariffs on auto parts used in US-assembled vehicles, amounting to 3.75% of the Manufacturer's Suggested Retail Price (MSRP) of a manufacturer's US production for the following year, and 2.5% of US production the year after that.
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The White House said the move "tweaks the tariff action on automobiles and automobile parts by nudging manufacturers towards assembling their automobiles in the US, thereby decreasing American reliance on foreign car imports."
FOX Business' Aislinn Murphy chipped in on this report.
- The auto market has been significantly impacted by President Donnie T's tariffs on auto imports, causing pre-owned vehicle prices to surge and retail sales to plummet in April compared to March.
- Despite the recent slowdown in weekly price increases, it's expected that the auto market might experience a slowdown in the second half of the year due to robust demand earlier in the year.
- The executive order signed by President Trump on April 29 adjusted the auto tariffs by offering offsets for a portion of tariffs on auto parts used in US-assembled vehicles, which is intended to encourage manufacturers to assemble their automobiles in the US and decrease reliance on foreign car imports.
