Report: Tariffs Making It Harder To Find New Entry-Level Cars
Cars.com’s Industry Insights Report for the first half of 2025 contains some interesting findings as the early impacts of President Trump’s trade war come into focus, including that entry-level vehicles are becoming increasingly rare.
The data showed that vehicles priced under $30,000 averaged just a 13.6 percent market share in the first half of this year, down from 38 percent in 2019. Most models in that category are built outside the country, making them extremely sensitive to tariffs, with only the Honda Civic and Toyota Corolla offering U.S.-built models.
While higher-priced cars may eventually be impacted, they’ve actually increased market share this year, with the $70,000-plus segment growing by one percent in June. That said, pre-tariff vehicle inventory is running low at many stores, which will drive higher prices. Combined with a lack of desirable models on the lot, that could drive a slowdown in the more expensive vehicle segments.
The good news out of all of this is that used car supply climbed as people scrambled to buy cars before tariffs took hold. People buying cars in March and April drove a significant jump in trade-in activity, with inventory climbing by 2 percent year over year. Prices fell slightly as a result, and inventory moved relatively quickly, averaging just 52 days on the lot.
[Images: Toyota, Honda, Hyundai]
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Chris grew up in, under, and around cars, but took the long way around to becoming an automotive writer. After a career in technology consulting and a trip through business school, Chris began writing about the automotive industry as a way to reconnect with his passion and get behind the wheel of a new car every week. He focuses on taking complex industry stories and making them digestible by any reader. Just don’t expect him to stay away from high-mileage Porsches.
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The story is bogus. Entry level vehicles disappeared well before the tariff changes happened.
GM said recently that they will be raising prices by 0.5 percent to 1% due to tariffs (year over year). I suppose we should all panic now.
They also published vehicle deliveries by model (which I reviewed, but you won't, because I have a stronger work ethic than you).