In a significant escalation of trade measures, President Donald Trump announced on Wednesday the imposition of a 25% tariff on all automobiles and light trucks imported into the United States. The tariffs are set to take effect on April 2 and aim to bolster domestic manufacturing by encouraging automakers to produce vehicles within the U.S. CBS NewsNew York Post
The announcement has sent ripples through global financial markets, with auto stocks experiencing notable declines. Major U.S. automakers such as General Motors saw shares slump by 8%, while Ford and Stellantis each faced drops of approximately 4.5%. International manufacturers were also impacted; Japanese automakers Toyota, Mazda, and Subaru experienced share decreases of 4%, 5%, and 6% respectively. Similarly, Indian auto stocks are also likely to take some hit from the announcement.
The tariffs are expected to raise the cost of imported vehicles, potentially leading to higher prices for consumers.
