Goldman Sachs reduces U.S. vehicle sales estimates by nearly one million units due to tariffs

Goldman Sachs on Thursday reduced its estimate for U.S. auto sales this year by nearly one million units as President Donald Trump’s tariffs make vehicle purchases more expensive.

While Trump suspended reciprocal tariffs on countries other than China for 90 days on Wednesday, the announcement did not appear to affect tariffs on autos, steel and aluminum, raising concerns about increased costs for the sector.

«We believe the proposed tariffs will increase the cost of importing and manufacturing vehicles in the U.S. by at least low to mid-single digits,” said Goldman Sachs analysts led by Mark Delaney.

However, the auto sector will find it difficult to fully pass on these increased costs to customers, especially when demand slows, according to the brokerage.

The Wall Street giant predicts that net new vehicle prices in the United States would rise by $2,000 to $4,000 over the next 6 to 12 months as automakers account for tariff-related charges.