In the eve of the 25% import car tariff introduced by Trump, a buying spree swept across the US car market.

All major automakers have released their impressive first-quarter results. General Motors (GM) disclosed that its sales surged by 17% year-over-year, with retail sales increasing by 15%. Hyundai and Kia both set new quarterly sales records, while Ford, Toyota, and Honda also reported varying degrees of growth, especially a significant month-on-month increase in March sales.

Several analysis institutions had previously predicted that the new import car tariff announced by the Trump administration has prompted a large number of consumers to place orders in advance to avoid potential price hikes. Thomas King, president of JD Power's data analytics division, said:

"The strong performance in March was largely due to consumers accelerating their purchases in an attempt to lock in lower prices before the tariff takes effect."

Consumers Rush to Buy Cars

March 31st was the deadline for U.S. automakers to submit their quarterly delivery data. From the disclosed data, popular models generally performed impressively:

The sales of GM's Korean-produced small SUV Trax surged by 57%, and this model will be subject to a 25% tariff starting April 3rd;

Electric vehicle models are also making a final push: The sales of GM's Mexican-produced Blazer and Equinox EV nearly doubled;

Ford's retail sales increased by 5% in the first quarter and surged by 19% year-over-year in March;

Hyundai's deliveries increased by 10% year-over-year in the first quarter, with a 13% increase in March alone;

Kia's sales increased by 11% year-over-year in the first quarter, with the Sportage and the new K4 models being particularly popular;

Honda CR-V grew by 24% in March and increased by 9% in the first quarter.

In addition, Tesla is expected to release its global delivery data on Wednesday. On Tuesday, the company's stock price rose nearly 7.1% during trading hours.

Dealerships have clearly felt this wave of purchasing enthusiasm. Rhett Ricart, a dealer in Ohio, revealed: "Consumers showed a strong sense of urgency to buy now, and we have already received more inventory in advance to meet the demand." Currently, the average inventory at dealerships across the country can support sales for 60 to 90 days.

The Trump administration is about to impose a 25% tariff on all passenger car imports, which currently account for about half of the U.S. market share. Although some models are produced domestically, even those "non-imported" cars usually use a large number of non-U.S.-made components, which may also be subject to taxation.

Previously reported, several major U.S. auto manufacturers are urgently lobbying the government in hopes of excluding certain price-sensitive low-cost components from the tariff list. According to a study by Anderson Economic Institute, full-scale taxation could increase the manufacturing cost of each vehicle by up to $12,000. For mid-to-low-end models with limited pricing, this could directly break through the profit margin, forcing some models out of the U.S. market.

Mercedes May Cut Entry-Level Models

Bloomberg cited sources familiar with the matter as saying that Mercedes-Benz is considering cutting entry-level models sold in the U.S., such as the GLA compact SUV (starting at around $40,000). The reason is that these relatively low-priced models, which already have low profits, may incur losses if forced to bear a 25% tariff.

Sources said that Mercedes-Benz has not yet made a final decision and may change its strategy based on the implementation of the tax. They stated that the lack of clear guidance from Washington has left executives frustrated, unsure how to respond.

The U.S. remains an important market for Mercedes-Benz, especially in the high-profit segment of large SUVs. Instead of taking risks, Mercedes-Benz prefers to redirect resources to higher-margin large SUVs and flagship sedans.

Under the leadership of CEO Ola Källenius, Mercedes-Benz has been shifting its brand upward in recent years, focusing on capacity and resource allocation for top-tier models like the S-Class, gradually reducing the proportion of compact models in the global market.

Due to the slowdown in global electric vehicle demand, Mercedes-Benz has postponed its plan to fully transition to electric vehicles. In February, the company reiterated its commitment to continue investing in internal combustion engine models and expects profitability to be affected by "intense competition, trade tensions, and shifts in consumer preferences."

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