Reports have emerged indicating that the U.S. used car market has been severely impacted due to the tariff policy of the Donald Trump administration.
On the 26th (local time), The Wall Street Journal (WSJ) reported, citing data from automotive market research firm Cox Automotive, that the inventory of used cars held by dealers at the beginning of May was enough for 43 days, the lowest level since the pandemic period in 2021.
Typically, it is common for vehicle inventory in the used car market to increase after mid-April. However, due to supply chain disruptions from tariffs, rising new car prices, and increased vehicle ownership duration among Americans, a shortage of inventory has occurred.
With inventory being scarce, used car prices are soaring. According to Cox Automotive, the average price of used cars based on the 50 best-selling models in the U.S. has been on an upward trend for the past two months, approaching $29,000 (about 39.73 million won).
Charlie Chesbrough, senior economist at Cox Automotive, noted, "I expect used car prices to rise more rapidly during the summer."
Automakers have already begun raising prices. Ford has increased the prices of three models produced in Mexico. As new car supply has decreased and prices have risen, consumers have flocked to the used car market, leading to a shortage of used car inventory.
Glen Gotfried, a sales manager at an auto dealership in Ann Arbor near Detroit, told the WSJ, "Used car supply is constrained, and the tighter the condition of the used car, the more severe the supply constraint."
Earlier, the Trump administration implemented a 25% tariff on foreign-made cars effective April 3. Beginning on the 3rd of this month, a 25% tariff was also imposed on automotive parts, including engines. However, tariffs on parts equivalent to 15% of the price of cars assembled in the U.S. have been exempted for one year until April 30 of next year.