Auto Stocks Stumble After Trump Announces a 25% Tariff On Imported Cars and Auto Parts

Donald Trump has announced a 25% tariff on imported cars and auto parts, taking effect on April 2nd. Consumers could see car prices shoot up by $4,000 to $12,000.

Auto stocks around the world took major hits after the announcement. Volkswagen’s shares dropped 2%, with other German automakers like Mercedes-Benz and BMW seeing declines of 2-4% in European trading. Stellantis, the parent company of Chrysler, Fiat, Jeep, Peugeot, and Ram, saw a nearly 5% drop in European shares. In Asia, Toyota, Honda, and Nissan all saw their stocks fall by about 2% in Tokyo, while Hyundai and Kia dropped 3-5% in Seoul.