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flag U.S. auto sales dropped in late 2025 due to high tariffs, inflation, job market strain, and expired EV tax credits, reducing consumer spending.

flag U.S. auto sales declined in late 2025 due to high tariffs on imported vehicles and parts, persistent inflation, and a tightening job market, prompting consumers to delay purchases, downsize, buy used cars, or extend loan terms. flag The expiration of the $7,500 federal EV tax credit in September also hurt electric vehicle demand. flag These factors contributed to a broader drop in consumer spending from October to November, as reflected in the Federal Reserve’s Beige Book and a declining University of Michigan consumer sentiment index.

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