The U.S. light vehicle sales rate slumped in May by the most in about five years following a rush by auto shoppers during the previous two months to beat anticipated price hikes stoked by President Donald Trump's tariffs on imported automobiles.
Urgent: 3 AI Stocks Set to Soar With Trump's Tariffs... Free Report Here
Wards Intelligence Tuesday reported the seasonally adjusted annual rate of light vehicle sales plunged to 15.65 million units last month from a revised 17.25 million in April and 17.83 million in March. May's drop in the SAAR of about 1.6 million was the largest since the onset of the COVID-19 pandemic in April 2020.
Early this year, in response to President Donald Trump’s tariffs on imported vehicles and parts, as well as on steel and aluminum, General Motors, Ford, and Stellantis scaled back or withdrew their financial forecasts. They cited the uncertainty the tariffs are causing the automotive industry.
GM cut its profit forecast and said it could see up to $5 billion in tariff-related costs. Ford suspended its annual guidance, estimating a $1.5 billion hit from the tariffs. Stellantis also pulled its guidance.
In the first quarter, U.S. auto sales inched higher on steady demand, as consumers and the industry braced for the fallout of Trump's tariffs.
Market research firm Cox Automotive said that U.S. new-vehicle sales volume increased 0.6% to 3.79 million units in the first three months of the year from the same period in 2024.
"Automotive tariffs — now set to take effect on April 2 — might have pulled ahead some vehicle purchases in Q1," said Jessica Caldwell, head of insights at automotive data provider Edmunds.
Sales have continued to be strong for Ford, which on Tuesday reported a 16% rise in U.S. auto sales for May, aided by demand for pickup trucks and crossover SUVs. Sales of the company's F-Series trucks were up 15% at 79,817 vehicles during the month.