The stock prices of major automakers tumbled in Europe and Asia, followed by shares of key American carmakers in premarket trading early on Thursday, after President Donald Trump announced “permanent” 25% tariffs on imports of all cars and trucks into the U.S.
Major automakers shares stumbled on Thursday morning after Trump announced 25% tariffs on all auto ... More
In Japan, Tokyo-listed shares of Honda closed nearly 2.5% down to $9.65 (¥1,456), Toyota’s stock fell around 2% to $18.75 (¥2,828.50) while Subaru Corp.’s shares tanked nearly 5% to $18.60 (¥2,805.00) on Thursday.
Shares of European carmakers were also down sharply in morning trading as shares of Volkswagen, BMW and Mercedes-Benz were down 2.1%, 2.3% and 3.55%, respectively.
Italian-American automaker Stellantis—which owns brands like Fiat, Chrysler, Dodge and Ram—was also hit by the sell-off as its stock fell 4.25% to $11.77 (€10.91).
Shares of Indian automaker Tata Motors, which owns Jaguar and Land Rover, were also badly hit, dropping more than 5.5% to $7.80 (₹668.60).
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In pre-market trading early on Thursday in the U.S., Ford’s New York Stock Exchange-listed shares were down around 1% to $10.20. General Motors’ shares have taken a worse hit, dropping 6.58% to $47.60.
After slumping more than 5.5% on Wednesday, shares of electric vehicle maker Tesla have largely been unaffected by Trump’s tariffs announcement. Unlike Ford and GM, which manufacture some of their top EVs in Mexico, all Teslas sold in the U.S. are manufactured in California and Texas. This could allow Tesla to undercut its competitors, however, Trump insisted on Wednesday that Elon Musk, Tesla’s CEO and the president’s close aide, did not influence his decision and has “never asked me for a favor in business whatsoever.” Musk himself pushed back against the notion that the tariffs will benefit Tesla in a post on X, saying: "Important to note that Tesla is NOT unscathed here. The tariff impact on Tesla is still significant.”
On Wednesday, the president announced he was imposing 25% tariffs on auto imports in a bid to bolster domestic manufacturing of cars and trucks. Trump said he believed the move would “spur growth,” and these tariffs were “permanent.” The president dismissed concerns about his tariffs causing a spike in car prices and said consumers would see prices drop as companies build more vehicles in American plants.
Trump Announces 25% Tariffs On Imported Cars—Here’s What We Know (Forbes)
Trump Threatens More Tariffs If EU Works With Canada To Cause ‘Economic Harm’ To US (Forbes)