The article discusses the sharp decline in the inventory of new and used vehicles in the US, attributed to customer urgency to purchase before impending tariffs imposed by President Trump. By early April, the average days' supply for new vehicles plummeted to 70 days from 91 days in March. Tariffs imposed on vehicle imports and auto parts expectedly threaten to increase vehicle prices and reduce discounts by summer. The surge in sales, largely driven by the anticipatory buying behavior of consumers, reflects concerns over rising costs and inventory shortages.
"The decline in [new] days' supply was one of the largest drops we've seen in several years," Jonathan Smoke, Cox's chief economist, said in an update to the report on Tuesday.
"Tariffs led to a surge in March sales, reducing inventory levels, especially for manufacturers with already low stock levels," Cox Auto analysts said in the release.
"As a result of these tariffs and the tightening inventory, and without a policy change in Washington, consumers should anticipate higher prices and fewer discounts on new vehicles by summer."
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