Auto giants have responded to U.S. President Donald Trump’s tariffs by announcing plans to raise prices, impose import fees, pause production and even layoff staff.
As part of plans designed to shift production to U.S. factories and bolster American jobs, the Trump administration on Thursday introduced 25% tariffs on foreign auto imports. The White House also said it intends to place tariffs on some auto parts no later than May 3.
The measures, which were separate to Trump’s sweeping new tariffs on major trading partners, have hit the global automotive industry hard.
Shares of some of the world’s biggest car brands traded sharply lower on Friday, extending steep losses from the previous session.
Auto stocks fell deeper into negative territory shortly after China’s finance ministry said Beijing intends to impose a 34% tariff on all goods imported from the U.S. starting on April 10.
Stellantis, which owns household names including Jeep, Dodge, Fiat, Chrysler and Peugeot, traded 7% lower at 1:30 p.m. London time (8:30 a.m. ET). The Milan-listed stock fell over 8% in the previous session.
Germany’s Volkswagen, BMW and Mercedes-Benz Group, meanwhile, all traded around 4% lower.
How have carmakers responded?
Volkswagen, Europe’s biggest carmaker, is planning to add import fees to the sticker prices of its vehicles shipped to the U.S. in response to Trump’s tariffs. The German auto giant has also reportedly halted all rail shipments of vehicles built in Mexico to the U.S.
The measures, which were first reported by trade publication Automotive News, appear to underscore the immediate impact of Trump’s tariffs on the company.
“We communicate to our dealer body about all aspects of the business, and we want to be very transparent about navigating through this time of uncertainty,” a spokesperson for Volkswagen told CNBC via email on Thursday.
“We have our dealers’ and customers’ best interests at heart, and once we have quantified the impact on the business we will share our strategy with our dealers,” they added.
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