New-vehicle prices surge from impact of tariffs

New-vehicle prices jumped by $1,315 on average in Q1 2026 when compared to vehicles added to the inventory in the same month in 2025. According to the Cars.com industry insights report, the increase is likely driven by tariffs put in place by the Trump Administration.

What we know: The report predated President Donald Trump threatening a new round of tariffs on vehicles from the European Union last week, with a 25% tariff for allegedly not complying with the trade agreement agreed to last year in Scotland.

Though a U.S. Supreme Court decision this year overturned reciprocal tariffs, many of the duties on aluminum, steel, and copper remain in place, along with a 10% tariff on goods put in place by the Trump Administration following the court decision. 

Aaron Bragman, Detroit Bureau Chief at Cars.com, said it is not a surprise to see the cost of the tariffs now being felt in the market.

Zooming in: Along with the tariff impact, Cars.com noted the destination fees have continued to increase for domestic brands. 

Destination fees increased by 25% or $148 from 2025. That was after a 163% jump in 2025. Domestic brands now average $2,189 in destination fees, which is a $713 premium over the $1,476 import average.

In the past four years, domestic-brand delivery fees have surged by $636. Imports are up $311. “The delivery fees are up considerably…The over $2,000 in fees are eye-popping,” Bragman said.

Bottom line: New-vehicle supply is down 3.5% from Q1 2025, which means tighter inventory and challenges for dealers trying to provide the stock car buyers want. 

“Automakers are cutting back and hedging their bets,” Bragman said.