The auto industry is bracing for impact as tariffs on vehicles take effect April 3. 

Auto stocks slumped on March 26 after confirmation that the tariffs will take effect as planned. The Big Wheels Stock Index fell 2.8% by market close, marking a sharp drop that has continued as the tariff deadline approaches.  

That market dip comes alongside fresh signs of consumer unease. U.S. consumer sentiment fell to its lowest level in more than two years in March, while long-term inflation expectations jumped to a 32-year high. The University of Michigan’s final sentiment index dropped to 57 in March, down from 64.7 in February. 

Meanwhile, industry performance dipped as tariff fears set in, auto loan rejection rates crept up.  

The Auto Finance Composite Index landed at 135.06 in February, down 14% year over year and 3.4% month over month. The index, factoring multiple datasets, measures whether the auto finance market is performing positively or negatively.   

In this episode of “Weekly Wrap,” Auto Finance News Senior Associate Editor James Van Bramer breaks down the key takeaways from last week’s tariff developments, other top stories through March 28, and what’s ahead as the industry braces for the tariff impact. 

This episode is sponsored by Earnix.