From Yahoo Finance: 2025-03-26 20:55:00

President Trump’s 25% auto import tariff announcement caused concern globally, with fears of price hikes and job losses in major auto-exporting countries. The levies could add thousands of dollars to vehicle costs, impacting an already struggling sector. Most auto stocks fell, except for Tesla. The U.S. is the world’s largest car importer.

European automakers lost billions in market value, calling for a transatlantic deal to avoid the tariffs. Carmakers face tough decisions on production localization, cost absorption, or passing tariffs to consumers. Some companies like Volvo, Audi, and Ferrari plan to adjust production or raise prices. Supply chain disruptions are expected.

The tariffs will impact North American auto production immediately, cutting output by about 30%. The White House believes the tariffs will strengthen the U.S. automotive sector, following the revised USMCA agreement. Companies may certify U.S. content to avoid taxes. CEOs hesitate to make long-term decisions amid uncertain policy changes.

Global auto companies are preparing for the tariffs’ effects, with supply chain disruptions expected. Europe’s industry faces billions in losses, with companies considering production adjustments or price hikes. The U.S. auto sector anticipates significant changes in production and costs, impacting consumers and the industry as a whole.



Read more at Yahoo Finance: US auto tariffs shake global industry as higher prices, job losses loom