CNBC's Phil LeBeau joins 'Squawk Box' to discuss the impact of tariffs on auto prices.

Washington

Recent auto tariffs have resulted in a modest increase in average transaction prices for vehicles, with the industry average now just below the all-time high. Brands like Land Rover have notably passed on tariff-related costs to consumers, while others such as Cadillac have introduced higher-priced electric vehicles. However, some brands, including Jeep, Tesla, Acura, and Chrysler, have seen transaction prices drop due to competitive pressures and internal company strategies.

Despite expectations that tariffs would push average prices above $55,000, this has not occurred. Many automakers are absorbing the additional costs to maintain market share, impacting their profit margins rather than consumer prices. The overall market remains strong, with healthy demand and sales rates above industry forecasts.

Tariff impact on auto prices: Here's what to know

All right, three months after the auto tariffs kicked in, transaction prices are edging higher, with a couple of trends dictating which brands are charging more. Bill Aboe joins us right now. He's got a look at where prices are headed and which companies are upcharging. Bill, good morning. What's the answer? Well, it's not that they're upcharging, Becky. It's that because of a variety of factors, they are asking the customer to pay more. And the customer is paying more, though sales are slowing down. Let me give you an example here, sales slowing down for those particular brands. Let me give you an example where the transaction prices have gone up. Now, this is year over year. Land Rover is a perfect example where the tariffs had a huge impact, and as a result, Land Rover has essentially had to pass a lot of that onto their customers. Cadillac has been rolling out some new EVs at a higher price point. There's an explanation for each specific brand, but when you look at the overall transaction prices for the industry, comes in right now at $48,841. That is just a smidge, just a smidge under the all-time high, but auto prices in July, compared to July of last year, up 1.5%. And the expectation in the industry is that it will continue edging up in the months to come, though some brands, Jeep, Tesla, Acura, Chrysler, they've seen their transaction prices drop. Jeep and Chrysler, we know the issues that are happening at Stellantis. They're trying to correct those right now. Tesla, we've talked about the issue with it being brutally competitive for them right now, and as a result, they are trying to do whatever they can to increase sales. So as you take a look at GM, Ford, and Toyota, the reason that we're showing you these is that these are the mass market brands. Keep in mind that they don't raise prices across the board. It depends on the model and the competition for that model. Let me give you an example. The Toyota RAV4. You might sit there and say, well, are they raising the prices there? Not necessarily, because they might be looking across the street at a comparable model from Honda, and the prices have not gone up, and the dealers have to adjust to the competition. Bottom line is this. There is still healthy demand in the market, as you see with the July auto sales rate of 16.87 million, and we're well above 16 million right now for the year, which many people did not expect after the tariffs went in line, went into effect, but we are seeing a gradual increase in transaction prices. Hey, Phil, I would, I mean, you said we are just a smidge away from the all-time high. I guess maybe the newsworthy part is we're not even at an all-time high with these new tariffs that have come in. When was the all-time high, and why was it higher then than now? It was only a couple hundred dollars higher, and it was a year or two ago. I mean, it's been hovering in that $48,000, $49,000 range, Becky, so it's not off by much, and when I say we're only a couple hundred dollars away from an all-time high, there are factors, seasonality within the auto industry that impact that. I would generally say we are there. We are really, really close to an all-time high, but it hasn't surged. I mean, a lot of people thought once the tariffs go into effect, many people were predicting transaction prices on average will go well over $55,000. That has not happened. Okay, because that's kind of what I thought, too. The idea that you're not at an all-time high and you're not surging to these new levels, does that come down the road? And you know why, Becky? Why? You know why? Because the automakers are generally eating the tariffs. Generally speaking, they are eating the tariffs. Not all of them. Yeah, the margins are taking the hit. That's where you're noticing the impact. Let me look at the Q2 results. We saw GM, Ford, Stellantis. I mean, they're all taking a hit because they can't afford to say I'm gonna raise the price $7,000 when the guy across the street is still keeping it at the existing price. You have to do what the market is dictating. You're only as smart as your dumbest competitor, too.

Ukrainian President Volodymyr Zelenskyy arrived at the White House Monday (August 18) for his meeting with President Donald Trump and other European leaders about Russia's war in Ukraine. CBS News White House reporter Taurean Small has more.

Ukraine Invasion

Trump meeting with Zelenskiy, European leaders at White House

Hamas on Monday informed mediators that it had accepted a ceasefire deal proposal submitted to it the day before, according to international and Israeli outlets.

Jerusalem

Middle East Conflict

Reports: Hamas accepts latest Gaza ceasefire proposal

Hurricane Erin will bring dangerously rough surf to parts of the U.S. East Coast. Over the weekend, Erin's outer bands lashed Puerto Rico with up to 7 inches of rain and flooding parts of the island.

East Coast of the United States

Erin expected to bring dangerous conditions to U.S. East Coast

Ahead of his Monday meeting with President Trump, Ukrainian President Volodymry Zelenksyy says his country will not give up any territory to Russia, even as the White House insists potential land swaps will be necessary. Willie James Inman reports.

Kyiv

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Thousands of Israeli protesters demanded a deal to secure the release of hostages still held by Hamas in one of the biggest demonstrations since the war in Gaza began. Debora Patta reports.

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European leaders voiced strong support for Ukraine ahead of a Washington summit with U.S President Donald Trump. They emphasized unity, territorial integrity and security guarantees as essential to any peace deal.

Paris

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International condemnation and pressure from allies have done nothing to stop Israel's plan to displace the people of northern Gaza. Israel on Saturday (August 16) said it is preparing to move Palestinians from combat zones to southern Gaza.

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Thousands of people took to the streets on Sunday in a nationwide strike amid fears further fighting could endanger the 50 hostages believed to still be in Gaza.

Tel Aviv-Yafo

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Russia continues to target Ukrainian cities firing hundreds of missiles and projectiles daily despite ongoing peace efforts, led by the United States. Ukrainian officials say their unwillingness to dial back their offensive reflects their lack of sincere interest in peace.

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Anchorage

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Efforts by Texas Republicans to redraw the state's congressional maps got new pushback from protesters at rallies across the country Saturday. Nearly 280 events took place in 34 states, according to organizers.

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President Trump reversed course Saturday, saying he is no longer seeking an urgent ceasefire in Ukraine, but now agrees with Russian President Vladimir Putin that pursuing a peace deal is the best way to end the war.

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Being a Category 1 hurricane, Erin underwent a 'rapid intensification' which helped the storm to grow and strengthen to a powerful Category 5. Hurricane Erin won't make a direct hit on the U.S., but it will produce dangerous surf conditions for the entire East Coast.

San Juan

Hurricane Erin 'rapidly intensifies' to a Category 5

The Washington, D.C., police chief will remain in command of the local force following a settlement with the Trump administration over the federal takeover, but they are required to cooperate with the White House's immigration policy.

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The Atlantic Ocean's first hurricane of the season, Erin, has continued to gain strength and currently sits off the coast of Anguilla.

Hurricane Erin strengthens in the Atlantic

President Trump and Russian President Vladimir Putin met on Friday in Alaska to discuss the war in Ukraine. The leaders did not announce a peace deal, but Trump is set to meet with Ukrainian President Volodymyr Zelenskyy on Monday.

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President Trump and Russian President Vladimir Putin met in Alaska for a high-stakes summit over ending the war in Ukraine. Nancy Cordes and Margaret Brennan have coverage and analysis.

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Israel's far-right finance minister approved the construction of a controversial new settlement in the West Bank, saying it "finally buries the idea of a Palestinian state." But it's unclear if this move will actually go through. Rights groups swiftly condemned the plan.

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Ukrainian President Volodymyr Zelenskyy met with British Prime Minister Keir Starmer in London. This comes one day before U.S. President Donald Trump is set to meet with Russian President Vladimir Putin in Alaska to discuss a possible ceasefire in Ukraine.

London

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Speaking in the Oval Office on Thursday, President Trump sounded optimistic about his upcoming summit with Russian President Vladimir Putin in Alaska.

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