Domestic automotive sales bounced back in July, reaching their highest level since April when consumers rushed to beat the implementation of higher tariffs on US imports of foreign cars and parts.
Sales of light vehicles — trucks and cars — climbed to a seasonally adjusted annual rate of 16.4mn units in July, from 15.3mn in June, the Bureau of Economic Analysis reported Monday. Last month's total was above July 2024's annualized rate of 15.8mn.
Light truck sales rose 8pc in July to a 13.8mn unit annual rate, while car sales rose by 2.6pc to a 2.6mn unit rate from the prior month.
Americans boosted vehicle purchases as confidence and the economy seemed to regain their footing following initial hits earlier on the new US administration's rollout of tariffs and other policies, with 25pc tariffs on car imports taking effect in April and 25pc tariffs on automotive parts taking effect in May.
Still, last week's employment report for July showing the lowest job growth for the last three months since the Covid-19 slump in 2020 will likely turn consumers off from new purchases going forward.
Domestic vehicle production in June dropped to a seasonally adjusted annual rate of 10.57mn from a downwardly revised 10.89mn in May, according to US Federal Reserve data. That compares with 10.57mn in June 2024. Auto assemblies are reported with a one-month lag to sales.
