During a recent media event at Toyota Headquarters in Plano, Texas, the company stated it was in “wait and see mode” regarding tariffs. Other automakers are clearly in a similar situation, as the number of vehicles imported into the United States in the month of May plummeted by more than 72%, according to a new report from Automotive News, citing the trade database, Descartes Datamyne. Maritime import volume dropped by 72.3% compared to May 2024, clearly caused by the 25% tariffs on automobiles that went into effect in April.
- Base Trim Engine
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1.6-liter inline-4
- Base Trim Transmission
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5-speed manual
- Base Trim Drivetrain
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Front-Wheel Drive
The data shows that 3,599.33 20-foot equivalent units (a measurement that uses 20-foot shipping containers to denote one vehicle) were shipped in May 2025, compared to 12,979.76 in May 2024. Parts and accessories saw a 15% drop from 89,910.08 to 76,591.16, while bodies (including cabs) actually increased by 18% from 233.67 to 275.91. It’s worth noting these numbers do not include shipments across the northern and southern borders from Canada and Mexico, respectively.
“It’s almost impossible to reach any other conclusion than this is the impact of vehicle tariffs manifesting itself in import volumes. My read on this is that importers are pausing, hoping that more favorable tariff conditions will emerge in the medium term.”
– Jackson Wood, director of industry strategy for global trade intelligence at Descartes Systems Group
Automakers Are Waiting It Out
Car dealerships generally like a 60-day stock of new vehicles on the lot, but those numbers can fluctuate a bit depending on how many units are in transit and other market conditions. Having too many cars means a vehicle might sit longer, thus costing the dealer money. On the flip side, having too few means they might not have the right combination of features or the right color to please a customer. Inventory numbers for April were pretty steady at 66 days, but the May numbers could show a significant drop.
Several automakers have already responded to tariffs by pausing imports, raising prices, or even discontinuing specific models. Jaguar Land Rover paused all shipments to the US before the Trump administration reached a deal with the United Kingdom, and Audi made a similar move.
The Nissan Versa even lost its manual transmission due to the tariffs, pushing the price well above $20,000. Some automakers committed to maintaining pre-tariff pricing, but only in the short term. It will take time before dealerships run out of cars that were not impacted by tariffs, but eventually, the costs will be unavoidable.
Related
The Most Affordable Nissan Versa Just Died Because Of Tariffs
Nissan is ceasing production of the five-speed manual transmission version of its most-affordable model, the Versa.
So Much Confusion From Every Direction
If you are finding it difficult to keep up with the tariffs, don’t feel discouraged because automakers are struggling too. The tariffs seem to change on a weekly or even daily basis, and it appears everyone (multi-billion dollar companies included) is struggling to keep up. The Trump administration clarified that the executive order prevents stacking of tariffs, meaning importers don’t have to pay steel and aluminum tariffs on top of the ones for vehicles. Automakers can even claim partial reimbursements on the auto parts tariffs, but have not been given guidance on how to receive them.
There is also confusion surrounding how vehicles that comply with the United States-Mexico-Canada Agreement (USMCA) will be impacted, if at all. If automakers’ only strategy is to avoid shipping cars in the short term, it could lead to a situation not unlike the supply shortages that occurred during the COVID-19 pandemic, albeit on a smaller scale. This could further add to the already rising costs of vehicles and parts due to tariffs. We will continue to update you with breaking news on tariffs as it becomes available.
Source: Automotive News
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