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New car prices rising as tariffs start to take hold

The average new car buyer paid 2.5% more in April than in March — just over a month after President Donald Trump imposed a 25% tariff on imports of automobiles and certain auto parts, according to Kelley Blue Book.

Executive Editor Brian Moody, who serves in the same role for Autotrader, said the average buyer paid $48,699 last month. Prices usually increase in April, but that figure is the second-highest April jump in a decade.

Moody said a lot of buyers went to showrooms as soon as they heard about the tariffs.

“The month of March was the best sales month in four years,” Moody told WTOP. “That just shows you how many people were headed to a dealership to, in their minds, beat the tariff.”

According to Moody, people in the market for a new vehicle will benefit from doing some research about prices: “In March, Infinity, Lincoln, Mazda, Porsche and Volvo were all up, while brands like Jeep, Ram and Mercedes-Benz had lower transaction prices.”

Prices haven’t jumped severely, in part because dealers have a supply of vehicles that were brought into the country before the tariffs were imposed.

In the future, “Any car that’s built wholly inside the U.S., even if they do use parts from overseas, are likely to have reduced or lower tariffs, or none,” Moody said.

Automakers are trying to avoid significant price increases as long as possible. Several, including Hyundai, Nissan and Mercedes-Benz, have publicly pledged to keep prices flat until particular dates.

“Ford recently said that one of their vehicles that’s made in Mexico, they had to raise the price,” Moody said. “But that still means the rest of their vehicles might be more reasonably priced, because they’ll want to spread those increases out across multiple vehicles.”

As an alternative to a new car, “Used car prices were already going to be headed up by the end of 2025 and into 2026,” Moody said. “Whatever impact the tariffs have in turning people away from news cars to used cars is only going to make that worse, but used cars were already heading up.”

The Iran war could drive up costs for petroleum-derived products like clothes and crayons

NEW YORK (AP) — It might be hard to imagine the Iran war weighing on stuffed toys with names like Snuggle Glove, Bizzikins and Wobblies, but even plush playthings are not immune when oil shipments from the Middle East are constrained. Like many soft toys, the creatures developed by a manufacturer in Fort Lauderdale, Florida, are made with polyester and acrylic, synthetic fibers derived from petroleum. Three weeks after the war started, suppliers in China notified Aleni Brands that getting the materials already was costing them 10% to 15% more, CEO Ricardo Venegas said. “I think this situation demonstrates how much oil permeates throughout our system, and we can’t get away from it,” said Venegas, who founded Aleni Brands last year and is in the process of adding product lines. “Who would have thought that the price of a toy would have a direct relationship with oil?” It's not just toys. Petrochemicals derived from oil and natural gas go into making more than 6,000 consumer products, according to the U.S. Department of Energy. Computer keyboards, lipstick, tennis rackets, pajamas, soft contact lenses, detergent, chewing gum, shoes, crayons, shaving cream, pillows, aspirin, dentures, tape, umbrellas and nylon guitar strings are just a few of them.
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