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As the April 3 deadline for President Trump's 25% tariffs on imported vehicles nears, automakers including General Motors (GM) and Hyundai have reported strong sales growth.

Consumers appear eager to purchase vehicles before potential price hikes caused by the tariffs, which could impact both imported cars and those made in the US with foreign parts.

In the first quarter of 2025, GM's sales soared 17%, with retail volumes up by 15%.

According to Fortune, the Detroit-based automaker experienced particularly strong growth in March, driven by refreshed models such as the Chevrolet Colorado pickup and the Chevy Traverse SUV.

"March was a particularly strong month for GM, with gains in key models," said a company spokesperson. GM also saw a substantial increase in electric vehicle sales, which nearly doubled during the quarter.

Hyundai also benefited from consumers trying to beat the tariff deadline, with a 10% increase in deliveries for the first three months of the year. Hyundai's popular Tucson SUV and Elantra sedan saw double-digit growth, while its affiliate, Kia, posted a record 11% rise in sales.

"This past weekend was by far the best I've seen in a very long time," said Randy Parker, CEO of Hyundai and Genesis in North America. "Lots of people rushed in, especially to try and beat the tariffs."

GM, Hyundai See Sales Jump as Buyers Race Against Tariff Deadline

The increase in sales is in part due to shoppers' fears of higher prices. Tariff-related anxiety has driven many to buy sooner rather than later.

"Consumers are accelerating purchases to avoid potential price increases," said Thomas King, president of data and analytics at JD Power.

Edmunds and Cox Automotive also predicted that shoppers would rush to buy vehicles before tariffs push prices higher, Washington Post said.

The tariffs, set to affect cars imported into the US, are expected to raise the cost of vehicles, with some studies estimating a price increase of up to $12,000. This has created a sense of urgency among buyers, with many flocking to dealerships to secure vehicles at current prices.

However, not all automakers have seen the same growth. Toyota reported a modest 7.7% sales increase in March but only a slight gain of less than 1% for the first quarter. Ford's overall volume dropped by 1.3%, though the company saw a 5% retail sales increase.

Experts warn that while the surge in sales is significant, the longer-term effects of the tariffs could slow the industry.

"The impact of the tariffs may weigh on the industry later in the year, especially if interest rates remain high," said Sam Fiorani, vice president of global vehicle forecasting at AutoForecast Solutions.

The potential for price hikes and reduced inventory could dampen consumer demand in the months ahead.

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