The US car market is under strain as import tariffs imposed by the Trump administration make new vehicles more expensive. As US buyers resort to buying used cars, prices climb amid rising demand and thin supply.

Virginia

Donald Trump has signed an order to impose tariffs imports into the U.S. from countries including China, Mexico and Canada.

Global Tariffs

Used car dealerships in the United States are seeing an unusual surge in demand, attributed to new tariffs on imported vehicles announced by the Trump administration. With a 25% tariff on most imported cars and parts, and a 15% rate for EU and Japanese models pending, new vehicle prices have risen, pushing more consumers toward the secondhand market.

However, the increased demand has led to a shortage of used cars, driving up their prices as well. Dealerships report record sales, but also note that people are holding onto their cars longer, further reducing the supply of trade-ins and affordable used vehicles.

Trump tariffs drive demand for secondhand cars in the U.S.

It's been a busy season for this used car dealership in Virginia. And front-end manager Vijay Kumar says they're all trying to keep pace with revved-up demand. Usually the summer is always active, but it wasn't like this. Usually at most it's like 200 average, but this summer alone we've been selling a lot more than we expected and we're trying our best to replenish our inventory. This time, big time, we've never sold that many cars like this just because of the potential fear of the tariffs. And how much more is more than they expected? I would just say around like 300 cars in just one month alone. We're moving around selling cars all in one time. We sold like 20 cars in one day and we're just a small dealership. With a 25% tariff on most imported cars and parts and a reduced 15% rate for EU and Japanese models not yet in effect, rising new vehicle prices have pushed more Americans towards the second-hand market. But supply and demand are catching up there too, meaning used cars are quickly losing their place as affordable alternatives. As demand for new cars goes down, people are keeping cars longer because there's a shortage of used cars right now. Prices are being pushed up significantly. As I mentioned earlier, people are keeping their cars longer, they're keeping them fixed up, they're driving them longer and longer and longer. And the trade-in availability is just not there. Average transaction prices for three-year-old used vehicles have risen steadily, with growth especially obvious in the second quarter after Trump announced the sweeping duties on imports, including cars. The best I would really say just look at cars, look at the news, but more so if you like a car particularly right, get it as soon as you can I would say. A used car salesman would always say that, but at this particular time, many would be inclined to listen.

The Trump administration launched a new immigration enforcement operation in Chicago, saying the latest federal crackdown in a US city would target the "worst of the worst criminals." But activists in the city remain defiant and say they will resist efforts by ICE to snatch people off the streets.

Chicago

Activists defiant as Trump launches ICE raids in Chicago

Norway's Labour Party has won four more years in government after seeing off a surge in support for the right. But exit polls predict it will only have a small majority, and its future may depend on how it navigates Norway's relationship with the rest of the world.

Oslo

Norway’s PM Stoere claims victory in general election

Officials in Nepal say at least 16 people are dead and dozens more injured after police opened fire on protesters. Tens of thousands, mostly young people, rallied in the capital Kathmandu against the government's ban on platforms including Facebook, X, and YouTube.

Kathmandu

Multiple fatalities as Nepal police fire on protesters

France's Prime Minister François Bayrou overwhelmingly lost a confidence vote Monday after nine months in office. CBS News correspondent Shanelle Kaul has more.

Paris

French PM François Bayrou ousted after losing confidence vote

The U.S. Supreme Court allowed the Trump administration to continue its sweeping immigration stops in the Los Angeles area after they were briefly halted. CBS News immigration reporter Camilo Montoya-Galvez has more.

Washington

Supreme Court allows L.A. immigration stops to continue

Two Palestinian gunmen opened fire at a bus stop on the outskirts of Jerusalem on Monday (September 8), killing six people in what police described as "a terrorist attack," one of the deadliest in the city in the past few years.

Jerusalem

Palestinian gunmen kill six at Jerusalem bus stop

U.S. President Donald Trump said he was ready to hit Russia with a second phase of sanctions after its largest air attack on Ukraine in nearly four years of war. The assault on Saturday caused serious damage in Ukraine's capital, including to one of its most important government buildings.

Ukraine Invasion

Trump considering second phase of sanctions on Russia

A drone launched by Yemen’s Houthi rebels struck southern Israel Sunday, hitting Ramon International Airport near Eilat and forcing a shutdown of airspace in the region.

Ilan and Asaf Ramon International Airport

Middle East Conflict

Yemen’s Houthi rebels strike Israel's Ramon International Airport

Protests have erupted in Chicago after U.S. President Donald Trump threatened a federal crackdown, including sending National Guard troops and expanding deportations.

Chicago braces after Trump threatens National Guard deployment

Russia's largest overnight air attack of the war set the main building of the Ukrainian government in Kyiv on fire and killed at least four people, including an infant, Ukrainian officials said.

Kyiv

Russia launches biggest air attack of the war on Ukraine

Problems with a cable likely caused a Lisbon funicular railway popular with tourists to hurtle down a hill, killing at least 16 people and injuring another 22 when it crashed into a building, according to a preliminary report.

Lisbon

Deadly Portugal funicular crash likely due to problems with cable

U.S. indie director Jim Jarmusch unexpectedly won the coveted Golden Lion at the Venice Film Festival on Saturday with "Father Mother Sister Brother", a three-part meditation on the uneasy ties between parents and their adult children.

Venice

U.S. independent director Jim Jarmusch wins Venice top prize

Japanese Prime Minister Shigeru Ishiba said on Sunday (September 7) he has decided to resign, caving to ruling party pressure on him to take responsibility for a series of election losses amid voter anger over rising living costs.

Tokyo

Japan's Prime Minister Ishiba resigns after election losses

South Korea announced the deal on Sunday. The immigration raid was part of a criminal investigation targeting a major economic project of a key U.S. ally.

Savannah

South Korean workers detained in U.S. raid in Georgia to be released

Chicago officials agree that a federal crackdown on immigration is imminent. Saturday kicked off a week-long celebration of Mexican Independence Day.

Chicago officials agree a federal immigration crackdown is imminent

Wall Street took hits on the market after hiring slumped in August. The economy added 22,000 jobs, far below expectations, fueling fresh concerns about a slowdown.

Trump hits the links amid economic slowdown concerns

The United States is not talking about regime change in Venezuela, President Donald Trump said on Friday, as the United States ordered an additional 10 stealth fighter jets to a military buildup in the Caribbean.

Caracas

Trump plays down regime change in Venezuela amid military buildup

The Israeli military told Palestinians in Gaza City to leave for the south before bombing a high-rise tower as its forces advance deeper into the enclave's largest urban area.

Tel Aviv-Yafo

Israel tells Palestinians to leave as it pushes into Gaza City

US President Donald Trump's threats to deploy National Guard troops to Chicago, Baltimore, and New Orleans have ignited resistance from local leaders and residents, who argue the deployments serve as intimidation rather than crime prevention.

Trump to send National Guard to more cities

The White House said the U.S. is sending 10 F-35 fighter jets to Puerto Rico. It comes as the Defense Department confirmed that two armed Venezuelan F-16 fighter jets flew over a U.S. Navy ship in the region on Thursday.

U.S. to send F-35 fighter jets to Puerto Rico amid Venezuela tensions

President Trump signed an executive order to start the process of renaming the Department of Defense to the Department of War, restoring a name the agency last held in the late 1940s.

Trump orders Defense Department be renamed as Department of War

Xi and Kim, along with top officials from their countries, met on Thursday at Beijing’s Great Hall of the People a day after Kim attended a Chinese military parade alongside other foreign leaders including Russian President Vladimir Putin.

Beijing

China’s Xi and North Korea’s Kim meet in Beijing, pledge deeper ties

Two Venezuelan fighter jets flew over the USS Jason Dunham, multiple Defense Department officials confirm, calling the action a "show of force." CBS News' Willie James Inman and Charlie D'Agata report.

Two Venezuelan fighter jets fly over U.S. Navy ship, officials confirm

A massive Immigration and Customs Enforcement raid at a Hyundai manufacturing site in Georgia led to hundreds of immigrants being detained for apparently living and working in the U.S. illegally.

Massive ICE raid at Hyundai site leaves 475 detained in Georgia

Israel targeted a high-rise building in Gaza City, the military said in a statement. As the world braces for Israel's major military operation to seize Gaza's largest city, Hamas released a video purportedly showing two hostages, including one calling on Israel not to carry out its planned Gaza City offensive.

Trump tariffs drive demand for secondhand cars in the U.S.

Breakdown

See The Full Story

Global Tariffs