The latest data surrounding the influx of vehicles into the United States paints a rather grim picture. This reveals a palpable response from vehicle manufacturers to the newly imposed tariffs on imported vehicles by the Trump administration. As a result, a decrease in vehicles entering the country could risk scarcity in the new car market and potentially inflate prices of pre-owned cars. Is this merely a temporary hiccup until manufacturers relocate their production facilities to the U.S. or something more permanent? It’s quite unclear at this stage.
Manufacturers and importers are still holding onto a glimmer of hope for some leniency from the White House in its foreign trade regulations. The newly imposed tariffs could push up vehicle prices by a significant margin, with costs potentially rising by up to $6,000. In response to the ongoing scenario, industry leaders are making moves to discuss the emerging situation with the President.
The declining car import data reflects a worrisome landscape. Over half of the cars typically imported were absent in May. While several car manufacturers operate some production units in the U.S., the majority of popular models, electric vehicles (EVs) especially, are still getting assembled abroad. This could have some far-reaching consequences, like affecting the varieties available to consumers and limiting their choices at dealerships.
The reported data, gathered from Descartes Datamyne, does not factor in imports from neighbouring countries like Canada and Mexico. Instead, it concentrates on eastern and western U.S. ports, which are chiefly responsible for scrutinizing inbound shipments from Europe and Asia. The import volumes, encompassing cars, trucks, and SUVs, witnessed a profound decline of 72.3% in May compared to the same period the prior year – that’s nearly 9,380 fewer vehicles entering U.S. ports in a single month.
Furthermore, not only are the imported vehicles feeling the pinch due to the tariffs, but the essential components necessary for their construction are also adversely affected. Fuelling further concerns, imports of parts and accessories showed a dip of 15% in May 2025, amounting to 76,591.16 TEU compared to 89,910.08 TEUs in the previous year.
However, providing some respite, there was no significant change observed in the imports of vehicle bodies and cabs, suggesting they were spared from the tariff impact. As the dealings become high-stakes, predicting the next move from automakers is anything but straightforward. The entire automotive industry appears to be in suspended animation, awaiting explicit directions from the White House.
Shifting production to US soil might seem like a simple solution, but executing this idea is another challenge entirely. With complications such as the applications of tariffs on imported parts used for vehicles assembled in this country still needing to be addressed, it’s a tricky situation to navigate. The noted absence of over 9,000 imported vehicles in May is a crucial factor that needs consideration too.
A reduction in imported vehicles predominantly affects automakers of European and Asian origin, who are still producing a chunk of their vehicles overseas. Take for instance Mitsubishi; this company assembles all of its models in Japan. Other manufacturers such as Audi, BMW, Mercedes-Benz, and Volvo also heavily lean on European production units to roll out their vehicles.
A pertinent case to evaluate the situation is the EX30, an entry-level, fully-electric vehicle initially produced in China. To circumvent the tariffs imposed on vehicles produced in China, the production of the EX30 was relocated to Belgium. But now, with the new import tariffs in full swing, the model has to confront a myriad of hurdles, resulting in a concerning blow to its U.S. market penetration.
Contrasting these foreign brands, American automakers seem to have a slight advantage, thanks to their capacity to shift production back to the U.S. more readily. Despite this, it’s still a complicated and arduous terrain for all entities in the automotive industry at present, with the future trajectory appearing rather uncertain.