The White House said 2025 marked the strongest year for U.S. auto sales since 2019, crediting President Donald Trump’s trade and manufacturing policies for the rebound.
“Earlier this year, analysts claimed President Donald J. Trump’s Made in America trade agenda would ‘deal a serious blow to automakers,’ ‘cut sales by millions,’ and ‘increase prices,’” the White House said in a statement.
According to the administration, new U.S. vehicle sales rose 2.4% in 2025, representing the industry’s best performance since before the pandemic. Major automakers including Ford, General Motors, Stellantis, Honda, and Hyundai reportedly posted strong results during the year.
The White House also said Trump’s One Big Beautiful Bill enabled Americans purchasing vehicles made in the U.S. to deduct auto-loan interest. In addition, it claimed the administration’s trade agenda spurred increased investment in domestic production from automakers such as Ford, Hyundai, Stellantis, General Motors, Honda, Toyota, Scout Motors, Rolls-Royce, Mercedes-Benz, Kia, Nissan, and others. The administration further credited the reversal of Biden-era policies and the elimination of vehicle stop-start requirements for contributing to industry gains.
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Industry data, however, presents a more mixed picture. According to Reuters, General Motors reported a 5.5% sales increase in 2025, driven by strong demand for large pickup trucks, SUVs, and electric vehicles. By contrast, Stellantis’ U.S. sales declined 3% compared with 2024, though the automaker regained momentum in the second half of the year under new CEO Antonio Filosa.
Automakers also navigated a challenging environment marked by supply-chain disruptions, unpredictable tariffs, and the removal of the $7,500 electric-vehicle tax credit. Those pressures prompted some consumers to move quickly, purchasing vehicles ahead of potential price increases tied to regulatory changes.
“To say it’s been a sales roller coaster of a year would be an understatement,” said Thomas King, president of OEM solutions at J.D. Power. Analysts caution that sustaining growth into 2026 could prove difficult as economic uncertainty and tariff-related costs weigh on consumers.
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J.D. Power said tariffs did not significantly impact overall vehicle prices, though some automakers raised prices on models manufactured outside the United States. The firm projected that the average new-vehicle retail transaction price in December would reach $47,104, an increase of $715, or 1.5%, from December 2024.
Affordability, however, remains a central concern for the industry. According to Reuters, Randy Parker, CEO of Hyundai Motor North America, warned that 2026 will be “very challenging.” “Affordability is going to be the key,” Parker said. Executives at Toyota Motor North America similarly said they expect prices to rise this year as tariff-related costs take hold.
“I do think in 2026 you will see some fairly significant price-ups,” said Andrew Gilleland, senior vice president of automotive operations at Toyota Motor North America.
Electric vehicles were a particularly volatile segment of the market in 2025. President Trump rolled back consumer tax credits and pushed to loosen fuel economy and emissions regulations, moves that dampened demand and led some automakers to scale back EV production plans. According to J.D. Power, EVs are expected to account for 6.6% of retail sales in December, down sharply from 11.2% a year earlier.