From Top Electric.

The U.S. automotive industry is reeling from a 72.3% plunge in car imports in May 2025, driven by the Trump administration’s 25% tariffs on imported vehicles, implemented in April. This unprecedented decline, reported by the maritime trade database, reflects automakers’ decisions to halt shipments, anticipating a potential policy reversal. The tariffs, far more severe than Europe’s taxes on Chinese EVs, have disrupted supply chains, with imports dropping by 9,400 20-foot equivalent units compared to May 2024. Auto parts imports also fell by 15%, though vehicle bodies saw an 18% rise, highlighting uneven impacts. Asian and European automakers, like Toyota, face significant challenges, while domestic giants like Ford and General Motors benefit from their U.S. production. Vehicle prices rose 0.3% in April, with sharper increases in May, as dealers exhaust pre-tariff inventory. The chaotic tariff landscape, marked by clarifications and a U.K. deal for a 10% tariff on 100,000 vehicles, adds uncertainty. Meanwhile, 16 states, including California, are suing the administration for withholding $3 billion in EV charging funds, a move critics say undermines climate goals and green economies. This lawsuit, filed in Washington State, highlights tensions over clean energy policies. The tariffs and funding freeze signal a broader shift, potentially reshaping trade, consumer costs, and the EV transition in the U.S.

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