Auto Sector Skids Globally After Trump’s Tariff Volley

Team Veye | 28-Mar-2025

U.S. President Donald Trump’s latest trade plan to implement a 25% tariff on imported cars and light trucks effective on April 3 sent the entire sector rolling.

The announcement hit stocks of General Motors, which tumbled 7.36% and Ford going down 3.88%. Car parts manufacturers Aptiv (NYSE: APTV) and BorgWarner (NYSE: BWA) both declined around 5% each. However, Tesla (NASDAQ: TSLA), defiantly moved up 0.39%, as general perception among investors is that the company will be minimally hurt by tariffs because of its production being largely domestic.
With the duty on auto parts starting on May 3. Investors are also anticipating another round of reciprocal tariffs, although hints have been dropped by the President that there a room for flexibility still existed.

The markets ended lower uncertainty prevailed on the Wall Street with investors worried about potential disruptions to supply chains and resultant impact on the economic growth.

(Source: Reuters)

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