U.S. auto sales increased 3% in December to bring the annual total to 17.5 million, or 0.4% above the prior year. This included the highest level of light truck sales in December since July 2005. The latter may explain the dip in imports. Shipments from Japan and the EU fared the worst, dropping 27% and 16% respectively in the year through December 29, while imports by sea from Canada jumped 21% and those from Asia ex Japan (mostly South Korea) rose 7%. The outlook for auto imports depends as much on the new administration’s trade policy as it does on customer demand.