Monday, June 16, 2025

U.S. car and container imports plummeted in May as tariffs impact volumes

by malinga
June 15, 2025 1:05 am 0 comment 13 views

Newly released data shows the depth of decline for car and container imports into the U.S. in May.

The uncertainties and back and forth on tariffs have taken a toll but the expectation is that importers will rush to bring goods in before the short-term pause on tariff increases is due to expire.

Car volumes were among the most impacted during May according to a report from Automotive News using information from logistics productivity data provider Descartes. Motor vehicle imports were off 72.3 percent in May as car companies paused shipments waiting for more favourable tariff conditions. The well-known car industry reporter Kelly Blue Book writes that the auto industry’s pattern has been to have 60 days of inventory on hand and 15 days worth in transit. Automakers’ inventory was down to 66 days at the end of April according to the report. It however highlighted in May that brands Jaguar and Land Rover had restarted U.S. shipments after a pause due to the tariffs. Descartes released similar container import data that shows that monthly imports fell nearly 10 percent from April to May and were down over seven percent versus the year earlier. It notes that this was the first time May container volumes were down in the last seven years except for 2020 during the pandemic.

Volumes from China were off more dramatically where its share of U.S. imports fell to just over 29 percent. Containers coming from China were off more than 20 percent month-over-month and 28.5 percent year-over-year. It was the steepest monthly decline in five years and contributed to 30 percent volume declines for both the ports of Los Angeles and Long Beach.

“After several months of import growth and following a wave of front loading of shipments in April, the impact of new tariffs began to materialize in May,” said Jackson Wood, at Descartes. “The effects of U.S. policy shifts with China are also now clearly visible in monthly trade flows.”

The retailers’ trade association National Retail Federation agrees highlighting that with front loading April’s volume was 2.21 million TEU which was up three percent over March and nearly 10 percent year-over-year.

The retailers said that the pause in tariffs on reciprocal tariffs is due to last till July 9, and for Chinese imports it is due to last until August 12. Donald Trump however infers that a deal is being finalised for the Chinese trade. U.S. and Chinese trade representatives were meeting again on Monday to go over the points the White House said. However, unless that deal is reached the NRF highlights in the rush to get merchandise into the U.S., the peak for the winter holiday imports will come early and be simultaneous with the peak end of summer/fall season imports creating a rush on the ports.

– The Maritime Executive

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