RBC sees positive environment for US automobiles ahead of tariff implementation

Brokerage RBC Capital Markets says that March U.S. dealer inventory and pricing data received a boost due to buying before tariffs take effect on April 3

Says, average transaction price (ATP) "is supportive of a healthy consumer and pent-up post pandemic demand"

Strong ATPs also support original equipment makers being able to pass through tariffs to consumers, at least for a period - brokerage

U.S. President Donald Trump's administration on Wednesday confirmed that his 25% global car and truck tariffs will take effect as scheduled on Thursday and that duties on automotive parts imports will be kick in on May 3

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

As of last close, shares of General Motors GM.N and Tesla TSLA.O have lost nearly 10% and 30% YTD respectively while Ford Motor F.N has gained ~4% compared to a 28% drop in the Dow Jones U.S. Automobiles Index .DJUSAU in 2025