The talking heads at investment group Goldman Sachs have slashed forecasts for the total number of new vehicles sold in America this year by about 1 million units.
The yo-yo which are this country’s on-again-off-again threats of tariff taxes are not just taking a toll on the stock markets, it is also impacting just how many new vehicles are likely to shuffle off American car lots this year. According to estimates released by the crew at Goldman Sachs, the market could take a hit to the tune of approximately 1 million units.
Despite the propensity of this administration to announce a tariff tax only to walk it back or pause it for a few weeks, there’s no arguing that consumers – like the markets – tend to be more optimistic during times of stability. With the White House providing the exact opposite, it is not inconceivable that total sales this year may fall even if all tariff taxes are completely paused for the time being.
At the moment, some customers are rushing to get behind the wheel of a new rig, seeking to avoid any tariff tax hike which may appear on window stickers. This resulted in a late March surge, growing the market by over 4 percent in Q1 on a year-over-year basis compared to 2024.
Can the market sustain this momentum after this rush to the table? Consulting the official VerticalScope Magic 8 Ball twice resulted in “answer unclear” and “ask again later”, which is probably more accurate than anyone would like to admit. Last year, Americans took home nearly 16 million new vehicles, up over 2 percent from the prior annum and the most robust volume since the pre-Covid era.
The only certainty is uncertainty, it seems. Anyone in the car racket is best advised to buckle in for a roller coaster ride.
[Image: Gretchen Gunda Enger/Shutterstock]
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