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- U.S. new car sales poised to rise 1.1% in May as tariff rush slows
U.S. new car sales poised to rise 1.1% in May as tariff rush slows
CDG News Alert (< 1 min. read)
Anna del Villar
May 26, 2025
Driving the news: U.S. new-vehicle retail sales are expected to rise 1.1% year-over-year in May, as the tariff-driven buying rush that fueled March and April began to cool, according to new data from J.D. Power and GlobalData.
For context: Total sales (including retail and fleet) are projected to reach 1.49 million units, flat year-over-year on an adjusted basis. But compared to last May without adjusting for selling days, that’s a 3.4% gain. Retail buyers alone are expected to spend $53.8 billion this month—a record for May.
Why it matters: The threat of tariff-related price increases hasn’t hit quite yet, but it’s looming. J.D. Power estimates average vehicle costs could rise by $4,275, with import-heavy lineups being the most exposed.
What we’re watching: Many automakers are running out of room to maneuver and there’s not a lot margin to absorb what’s coming next.
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