It’s been a story of ups and downs for the automotive market this decade. During the pandemic, it was mired in a multi-year inventory shortage due to supply chain disruptions.

Then, the industry saw promising growth and an encouraging comeback the last two years. In particular, manufacturers were cranking out cars again, and selling them too. U.S. “light-vehicle” sales (passenger cars and trucks) reached 15.5 million units in 2023 – a 13% increase from 2022 and a reverse of a one-year decline. Figures haven’t been revealed yet, but 2024 was expected to show growth, though at a more modest pace.

But the story’s changed in 2025. Amid the wide range of new levies unveiled by the Trump Administration was a 25% tariff currently applied to imported vehicles and certain auto parts. It’s sent automakers into shock, with multiple companies pausing shipments as they try to sort through the effects. Even U.S. automakers will be impacted; one study suggests the tariffs could cost companies like Ford, GM and Jeep nearly $110 billion. Many automakers, including U.S.-based ones, manufacture vehicles in nearby countries like Mexico.

Still, under the threat of cars becoming more expensive, vehicle companies are getting more aggressive to sell their existing inventory, and even promoting major discounts, as in the case of Ford.

So despite the uncertainty, there are still more than 18,000 new-car dealerships in the U.S. that are looking to keep clients and find new ones. In the U.S., automobiles are still distributed through individual dealers and independent franchises, though some brands, such as Tesla, are breaking through the traditional model and selling directly to consumers. Hundreds of car dealerships are bought each year, and distributors can position themselves for success by aligning themselves with dealers that are buying and growing, contributing to $940 million in automotive promo products sales.