NEW YORK, Dec. 1– High auto tariffs, persistent inflation and a tighter job market have forced more Americans to rethink their purchases, reported The Wall Street Journal on Sunday.
“Car buyers are downsizing, buying used vehicles, taking on longer car loans and holding out for deals,” said the report.
At the same time, the U.S. electric vehicle (EV) market has experienced a sharp downturn — accelerated by the expiration of the federal 7,500-U.S.-dollar EV tax credit in September, which has wiped out hundreds of thousands of potential sales and further weighed on the industry, it said.
The U.S. administration imposed a 25-percent tariff on imported vehicles in April and an additional 25-percent duty on auto parts in May, which resulted in higher prices for both imported and domestically produced vehicles.
The U.S. overall consumer spending declined further from early October to mid-November, the Federal Reserve said in its Beige Book released on Wednesday.
The decline reflects broader caution among Americans, many of whom feel pessimistic about job prospects and anxious about inflation, having to cut down expenditures, according to the University of Michigan’s consumer sentiment index released in November. (Namibia Daily News/Xinhua)
