U.S. Auto Sales Face Stiff Decline Amid Tariff Tensions
U.S. light vehicle sales saw a sharp decrease in May, reaching a five-year low due to a surge in purchases earlier in the year aimed at avoiding anticipated import tariff-related price hikes. The annual sales rate dropped drastically, marking the steepest decline since COVID-19 impacts in April 2020.
In a significant shift, the U.S. light vehicle sales rate experienced its most considerable downturn in nearly five years in May. This decline followed a surge in purchases in the previous months as auto shoppers looked to circumvent potential price hikes from impending tariff policies.
According to Wards Intelligence, May saw the seasonally adjusted annual sales rate (SAAR) plummet to 15.65 million units, down from a revised 17.25 million in April and 17.83 million in March. This 1.6 million unit decline represents the most significant drop since the early days of the COVID-19 pandemic in April 2020.
The sales slump highlights ongoing market volatility and consumer reactions prompted by international trade tensions, specifically tariffs imposed by President Trump on imported vehicles, which have sparked economic uncertainties.
(With inputs from agencies.)
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