US first-quarter auto sales get a lift from looming Trump tariffs

By Nathan Gomes

April 1 (Reuters) - U.S. buyers snapped up more pickup trucks and sport-utility vehicles in the first quarter from a year earlier in the run-up to President Donald Trump's tariffs on auto imports, which could raise prices by thousands of dollars.

General Motors GM.N topped the list with a 17% jump in sales, aided by demand for its affordable crossover SUVs, such as the Chevrolet Trax, manufactured in South Korea.

Meanwhile, first-quarter electric vehicle sales rose 19.2%, according to Wards Intelligence, even as Tesla TSLA.O is expected to report a decline in deliveries amid weakening demand for its aging lineup and a growing backlash against CEO Elon Musk's politics.

"Automotive tariffs — now set to take effect on April 2 — might have pulled ahead some vehicle purchases in Q1," said Jessica Caldwell, head of insights at automotive data provider Edmunds, before the data release on Tuesday.

President Trump's planned 25% levies on auto imports are due to be collected from April 3 and carmakers are weighing whether and by how much to raise prices.

The tariffs could also reduce the number of lower-cost imported vehicles in the market, such as Ford's compact Maverick pickup truck, further straining affordability as the average new-vehicle price nears $50,000.

"Many cars would see drastic overnight price increases almost by necessity — and that unquestionably would cause a decline in sales," said auction site owner Doug Demuro, referring to the tariffs.

Crosstown rival Ford Motor F.N reported a 1.3% drop in sales, citing the discontinuation of some models and the timing of certain rental fleet sales. Toyota Motor's 7203.T North American unit reported a rise of about 1%.

Asian automakers Hyundai 005380.KS, Mazda 7261.T and Honda 7267.T also reported higher quarterly sales.

"The last week, and including this past weekend, was by far the best weekend that I've seen in a very long time," Hyundai Motor North America CEO Randy Parker said Tuesday.

"So lots of people, I think, rushed in this weekend, especially, to try and beat the tariffs."

Overall, U.S. new vehicle sales in the quarter finished at around 3.91 million units, up 4.8% from last year, according to data released by Wards Intelligence on Tuesday.

"The potential for higher inflation due to new tariffs at American borders will all potentially hold back new-vehicle sales in 2025," market research firm Cox Automotive said.