Increased US car sales, largely attributable to a recent rush to purchase cars before tariffs take effect, have now slowed down considerably. According to data from Cox Automotive, new car sales fell by 300,000 units from May to June — from 15.6 million to 15.3 million respectively. The slowing sales from month to month is a reflection of many buyers moving their purchases to obtain prices prior to the increases.

The tariffs that the Trump administration implemented, have taken a toll on automakers such as Ford, General Motors (GM) and Volvo reported losses in the billions. Ford anticipates its annual profits will fall by $3 billion, GM forecasts a $5 billion hit and Toyota estimates it will lose $9.5 billion due to tariffs and trade policy. Ford has also raised prices on some of their models, including the Mustang Mach-E and the Bronco Sport upward of $2,000.

Consumer preferences are shifting to the used car market due to car prices rising 2.3% year-over-year. However, these purchases are resulting in greater dealership inventories. Dealerships reported that there were an average of 82 days of car inventories on their lots, up about 14% from May to June. Analysts predict that car prices are likely to increase 4 to 8% over the next six months due to these tariffs.