Automakers Absorb Tariff Costs, Price Hikes Coming | JQJO

Automakers are currently absorbing billions in tariff costs from imported materials and vehicles, preventing immediate price hikes for consumers. Despite this, new vehicle prices only rose 1.2% year-over-year in June, lower than the 10-year average. Companies absorbed these costs to maintain sales, but investors are pressuring them to pass costs on. Some automakers are shifting production to the US or cutting costs, but price increases of 4-8% are anticipated for the 2026 model year, potentially affecting financing and incentives.