Tariffs Threaten to Cut US Auto Sales by 700,000 in 2025 Amid Recession Uncertainty

Cox Automotive predicts 700,000 fewer vehicles will be sold in the United States this year due to tariff volatility.

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Recession fears, production disruptions and higher vehicle prices amid an ongoing trade war constrained the latest sales forecasts, Cox chief economist Jonathan Smoke told media Wednesday. 

The Atlanta automotive analytics and software company said it anticipates 15.6 million new vehicles will be sold in the United States in 2025, down 4.3% from the 16.3 million it originally forecast. 

According to the sentiment that Cox measures from car dealers, automotive sales were poised for growth in 2025, with strong economic and auto market indicators in the last six months. But tariffs and the potential for a full-scale global trade war are darkening forecasts, Smoke said, noting that, “uncertainty can be like a deep fog that ruins the morning commute.”

Read the Detroit Free Press article.

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