Ford and GM report big sales boosts as Trump's tariffs threaten to raise prices and hit their profits

• GM and Ford reported big sales boosts ahead of Trump's 25% tariff on imported cars.
• People have been "rushing" to buy ahead of the levies, dealers and economists have told BI.
• Analysts have said both automakers' bottom lines could be hit hard by the tariffs.

GM and Ford reported big increases in the number of cars sold ahead of the Trump administration's 25% tariffs on imported vehicles.

GM said that new vehicle sales had jumped nearly 17% compared to the first quarter of last year, while Ford reported a 19% increase in retail sales in March and a 5% increase overall for the quarter. It also reported a 94% increase in EV sales.

Ford still saw total sales drop 1%, largely due to the discontinuation of two models last year.

The two carmakers are among the most exposed to the 25% levy on imported vehicles that Trump announced would take effect Wednesday. Trump announced this last week after previously granting the auto industry a 30-day exemption from similar levies on Canada and Mexico.

GM and Ford both build cars for the US market in factories in Mexico. GM's Blazer and Equinox EVs and Ford's Mustang Mach-E are manufactured in the country.

Automakers and analysts have warned that Trump's auto tariffs will have a devastating impact on the industry, pushing up prices and potentially wiping out profits of the Detroit "Big Three" — GM, Ford, and Stellantis.

Analysis from Anderson Economic Group estimated that the levies could raise prices of new cars by between $4,000 and $12,000 depending on the vehicle, with EVs hit especially hard.

After Trump announced the auto tariffs, dealers and economists previously told BI that customers were "rushing" to buy cars before they came into effect.

Ford and GM were not the only automakers to see a bump ahead of the tariffs. Hyundai said March had been its second-biggest month for sales ever, while Toyota said US sales of its hybrids and electric vehicles rose 44% last month.

"The last week, and including this past weekend, was by far the best weekend that I've seen in a very long time," Hyundai Motor North America CEO Randy Parker said on a media call Tuesday, multiple outlets reported.

"I've been doing this now for a very, very long time. So lots of people, I think, rushed in this weekend, especially, to try and beat the tariffs," he added.