U.S. auto tariffs have helped drive sales all year.
Though auto prices have ticked up modestly throughout the year, the threat of more pronounced price hikes has incentivized buyers to purchase the car they’ve been considering.
Ford used incentives and the fear of tariffs to become the top-selling brand in the U.S. during the year’s first half. Ford said total sales in the second quarter rose at a rate 7x that of the overall auto industry.
The 1.11 million units it sold (a 6.6% year-over-year increase) were largely due to the employee pricing and 0-0-0 incentive programs.
“Automakers are providing healthy incentives to keep sales flowing. Prices are trending higher, but just as we are seeing in the broader retail markets, there’s sufficient demand and generous incentives out there, and that’s driving the market,” said Cox Automotive Executive Analyst Erin Keating.
However, over the past few months, President Donald Trump and his economic team have negotiated lower tariffs with Japan, the EU, and the UK, three of the biggest U.S. importers.
Lower tariffs could mean more competition for U.S. automakers. But the president announced a new set of tariffs on Sept. 25 that helped U.S. auto stocks get a leg up the next day.
U.S. auto stocks jump as President Trump reveals new tariffs
Amid President Trump’s deluge of tariffs on many different sectors, including manufacturing and pharmaceuticals, there are tariffs on heavy-duty trucks.
Starting October 1, the U.S. will impose 25% tariffs on those imports, but it is not clear whether these tariffs supersede the USMCA deal that gives Mexico and Canada lower tariff rates or the recent deals the U.S. signed with Japan, the EU, and the UK.
“Finally, it’s also not clear if the industry-specific tariffs will come on top of the country-based tariffs, although some countries, including the EU, have negotiated agreements that prevent tariff ‘stacking’,” Bernstein analysts said in a note, according to Reuters.
Related: EU and US automakers both lose big in latest tariff deal
Heavy-duty trucks are a big part of U.S. automaker sales.
According to Ford Authority, Ford’s F-Series accounted for 35% of total truck sales in the U.S. About a third of those trucks are heavy-duty.
Ford splits its F-Series Super Duty truck production (F-250 to F-550) between its Louisville, Kentucky, plant and its Oakville Assembly Complex in Ontario, Canada.
At last check, shares of Ford (F) jumped 3.6% Sept. 26, while shares of General Motors (GM) rose a more modest 1% and Stellantis (STLA) fell 0.75%.
Related: US car buyers feel tariff pain as one automaker raises prices
Nearly half of the vehicles GM sold in the U.S. in 2024 were imported, according to researcher GlobalData. GM sold 1.23 million imported vehicles in the U.S. in 2024.
GM imported more vehicles than Toyota.
Meanwhile, Stellantis sold 564,600 imported vehicles and Ford sold only 419,000.
U.S. reduces tariffs on EU imports
On Sept. 24, the U.S. implemented its trade deal with the European Union, officially reducing auto and auto parts tariffs to 15% from 25% retroactive to August 1.
The U.S. Commerce Department and the U.S. Trade Representative’s office released a notice announcing the deal.
The German Association of the Automotive Industry called the tariff reduction “an important step,” but it still maintains that the tariffs are high:
It should be noted that the current U.S. tariffs of 15% on cars and parts and 25% on commercial vehicles continue to pose a significant challenge for the German automotive industry. Added to this are the burdens posed by the additional tariffs on a range of steel and aluminum products.
But by Sept. 26, the association called the tax on heavy-duty trucks “incomprehensible,” saying “additional trade barriers would not only further burden investment and jobs in the U.S. but also weaken supply chains and increase costs.”
Related: Tariffs bring Japanese automakers to their breaking point
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