U.S. car imports fell sharply in May following the imposition of sweeping tariffs by President Donald Trump, signaling mounting disruption across the auto industry and a potential surge in used car prices.
According to Automotive News, U.S. vehicle imports dropped by 72.3% in May 2025 compared with May 2024, marking one of the steepest year-over-year declines in recent history. The report, shared via InsideEVs, links the collapse to Trump’s 25% tariff on imported new cars, which took effect in April, and a further 25% tariff on auto parts that followed on May 3.
Although used cars are not directly subject to the new tariffs, analysts say the impact is already being felt in that segment. “When new car imports fall or become too expensive, the used car market becomes the next stop for buyers, pushing prices upward,” the report notes.
Data from Cox Automotive confirms that trend, showing a 4% increase in used car prices compared with the same period last year. The dramatic fall in imports could further inflate those prices as consumers shift demand toward secondhand vehicles.
However, the sharp decline in import volumes may not solely reflect long-term market shifts. InsideEVs speculates that automakers could be temporarily holding back shipments in hopes of near-term policy reversals. Trump’s trade decisions have been described as unpredictable, adding further uncertainty for manufacturers planning U.S. distribution.
The broader outlook remains uncertain, especially as speculation grows that the current administration could scale back or eliminate existing EV mandates. That concern was heightened by a recent clash between Tesla CEO Elon Musk and President Trump over the future of electric vehicle regulations.
Industry observers warn that prolonged tariff pressure, combined with potential regulatory rollback, could rattle both automakers and consumers alike. As one analyst put it, “The U.S. car market may be entering a period of real volatility.”