Here’s a rewritten version of the article, focusing on clarity and conciseness while retaining the core information:
Tariffs Hit Auto Industry, But Consumers See Little price Hike – For Now
Despite meaningful tariffs on imported goods, new car prices have remained relatively stable, a trend that may not last. Automakers are currently absorbing the costs, but experts predict price increases are likely with the upcoming 2026 model year.
the global nature of the auto industry means tariffs on steel,aluminum,car parts,and imported vehicles,in place since spring,are impacting manufacturers. Companies like Stellantis, GM, Hyundai, Kia, and Volkswagen have reported paying billions in tariffs.However, these costs are not being fully passed on to consumers.
Erin Keating, executive analyst for Cox Automotive, notes that most automakers are “taking the tariffs on the chin,” meaning they are absorbing the financial hit. Ivan Drury, from auto data company Edmunds, explains that automakers are hesitant to raise prices further, as consumers are already facing high car payments, with the average new car costing nearly $50,000 and used cars averaging around $30,000. Many buyers are already stretching their budgets, with a record number paying over $1,000 a month for car payments and some owing more than their vehicles are worth.
“Price is almost the last thing they’re touching when it comes to, how are we going to, like, deal with these tariffs?” Drury stated.
While companies are initially absorbing the costs, Wall Street’s expectations mean this isn’t a lasting long-term solution. Automakers are exploring other strategies, such as moving some production to the U.S. or cutting costs elsewhere, perhaps by squeezing suppliers.Though, Drury anticipates that consumers will likely see price bumps with the 2026 model year vehicles, which are expected to arrive in showrooms in the coming months. Keating agrees, suggesting that price increases are probable with new model years, as it’s easier to introduce higher prices when accompanied by new features. Keating estimates that prices could rise by 4% to 8%, with anything above 8% potentially pricing cars out of their competitive market.The current situation, where automakers absorb tariff costs, is likely temporary. Once one manufacturer raises prices, it’s probable that others will follow suit.
