US auto sales set to modestly rise in first quarter as tariffs signal bumpy ride

April 1 (Reuters) - U.S. auto sales likely inched higher in the first three months of the year on steady demand, data from the carmakers will show on Tuesday, as the industry braces for the fallout of President Donald Trump's latest tariffs.

Market research firm Cox Automotive has estimated that U.S. new-vehicle sales volume increased 0.6% to 3.79 million units in the first quarter from a year earlier.

"Automotive tariffs - now set to take effect on April 2 - might have pulled ahead some vehicle purchases in Q1," said Jessica Caldwell, head of insights at automotive data provider Edmunds.

General Motors (GM) pickup trucks and SUVs are expected to help it retain its top spot in the quarter, followed by Toyota Motor's (TM) North America unit and Ford, according to Cox.

Electric-vehicle maker Tesla is also forecast to report a drop in first-quarter vehicle deliveries on Wednesday.

President Trump's move to levy tariffs on U.S. auto imports is widely seen as weighing on consumer sentiment and forcing a rethink on purchases.

The tariffs could also reduce the number of lower-cost imported vehicles on the market, such as Ford's compact Maverick pickup truck, further straining affordability as the average new-vehicle price nears $50,000.

"The potential for higher inflation due to new tariffs at American borders will all potentially hold back new-vehicle sales in 2025," Cox said.

Caldwell said tariffs would likely create challenges for the industry in the second quarter and beyond and expects discounts to be "harder to come by". (Reporting by Nathan Gomes in Bengaluru; Editing by Sriraj Kalluvila)