Car prices hold steady in May despite tariffs

Even with new tariffs on imported cars and car parts, American car buyers paid slightly less in May for new vehicles.

Even with new tariffs on imported cars and car parts, American car buyers paid slightly less in May for new vehicles. Data from Edmunds.com on Thursday showed that the the average price paid for new cars edged down 0.2% to $48,334 last month compared to April. The dip came despite higher prices from automakers: The average new-car sticker price automakers requested rose 0.2% last month, to $50,527. The prices are good news for buyers worried that tariffs would put vehicles out of reach, especially with car prices near record highs already. But it could also signal weaker demand and consumer reluctance to spend. Car prices are not unilaterally set by automakers, but through negotiations between car dealers and car buyers. The 25% tariffs on imported cars and parts took effect April 3. Every major automaker that sells cars in America, other than Tesla, imports vehicles. Nearly half of US auto sales last year – 46% – were imports.