- U.S. vehicle imports via sea plummeted by over 72% in May 2025 due to Trump administration tariffs, leading to disruptions in the automotive supply chain.
- Domestic vehicle sales and production have fallen, while material costs surged due to doubled tariffs on steel and aluminum.
- Global automakers are halting or delaying shipments to the U.S., creating long-term market instability and higher costs for consumers.
The Trump administration’s tariffs on imported vehicles and automotive parts have dealt a severe blow to the American car market. Starting April 3 for vehicles and May 3 for parts, the tariffs have led to a staggering 72.3% drop in the volume of vehicles arriving in the U.S. by sea in May 2025 compared to May 2024, according to data from Descartes Datamyne, cited by Auto News. Nearly half of all cars sold in the U.S. last year were imports, but that ratio has shifted drastically in the past two months.
Consumer Behavior and Domestic Market Effects
As the tariffs loomed, consumers rushed to purchase vehicles, leading to a brief sales surge, but demand has since dwindled. Domestic passenger car sales dropped to their lowest point since early 2025. The Bureau of Economic Analysis reported that light vehicle sales fell to a seasonally adjusted annual rate of 15.6 million units in May, down from 17.3 million in April. Meanwhile, domestic vehicle production also dipped, falling to 10.16 million units in April from 10.21 million in March, as reported by the U.S. Federal Reserve.
Steel and Aluminum Tariff Fallout Adds Pressure
The situation worsened after Trump doubled Section 232 tariffs on steel and aluminum imports to 50%. This escalation significantly increased the cost of vehicle manufacturing in the U.S., further burdening automakers and consumers alike.
Global Impact and Automaker Reactions
The ripple effects are global. UK vehicle manufacturing hit its lowest monthly level in over 70 years in April, with only 59,203 cars produced—comparable only to the output during the COVID-19 lockdown in April 2020. Exports to the U.S. drastically declined. Earlier this year, companies like Audi, Jaguar Land Rover, and Mitsubishi either stopped shipping to the U.S. or kept vehicles in port storage due to market uncertainty. Since tariffs are calculated based on the departure date from the origin, this added to logistical challenges.
Rising Costs and Consumer Burden
Reuters had projected in April that these auto tariffs would cost American consumers more than $30 billion in the first year through elevated vehicle prices and lower sales volumes. With domestic automakers gaining room to raise prices and foreign imports dropping, U.S. consumers now face fewer choices and steeper prices in an already strained market.
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Source: autoevolution
