WASHINGTON, June 4 (Xinhua) -- U.S. light vehicle sales witnessed the sharpest monthly drop in May 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.
Wards Intelligence reported on Tuesday that the seasonally adjusted annual rate of light vehicle sales plunged to 15.65 million units last month, down from a revised 17.25 million in April and 17.83 million in March.
May's drop in the adjusted annual rate of about 1.6 million was the largest since the onset of the COVID-19 pandemic in April 2020. The decline followed a surge in March, when sales hit their highest level since March 2021.
Despite the downward trajectory, automakers Ford and Hyundai reported increased sales in the U.S. market in May, the companies announced on Tuesday, as concerns over potential tariff-related price hikes continued to prompt buyers to act quickly on their car and SUV purchases.
President Trump's 25 percent tariffs on automotive imports took effect on April 3. Telemetry, a Detroit-area automotive advisory firm, forecasted that if the tariffs remain in place, U.S. and Canadian auto sales could decline by 1.8 million vehicles this year and remain stagnant over the next decade. ■