Domestic sales of light vehicles in April slipped from a four-year high the prior month but still reflected robust purchasing ahead of planned implementation of more US tariffs on the automotive industry.
Sales of light vehicles — trucks and cars — dipped to a seasonally adjusted rate of 17.3mn units in April, down from 17.8mn in March, the Bureau of Economic Analysis reported today. Last month's total still was above April 2024's annualized rate of 16mn and was the second-highest monthly reading since April 2021.
US consumers maintained steady purchasing last month in a rush to beat 25pc tariffs on imports of vehicle parts that were set to be implemented on 3 May. Those higher duties are expected to raise input costs for domestic automakers, and thus, prices for buyers.
US president Donald Trump early last week signed an order that allows vehicle manufacturers to partially recoup tariff-related costs, helping to ease the burden.
Still, Trump maintained his goal of forcing US automakers to become wholly reliant on auto parts made in the US. Trump already instituted 25pc tariffs on imports of foreign-made vehicles on 3 April.
Tariff-related pressures have dented US consumer sentiment and weighed on domestic manufacturing activity, but certain pockets of the economy have shown resilience such as the services industry and employment.
Truck sales last month fell by 1.9pc sequentially to 14.4mn unit rate, while car sales dropped by 8.8pc to a 2.9mn unit rate.
Domestic vehicle production fell to a seasonally adjusted annual rate of 10.07mn from an upwardly revised 10.09mn in February, according to US Federal Reserve data. That compares with 11.08mn in March 2024. Auto assemblies are reported with a one-month lag to sales.
