Stelantis Windsor assembly plant in Windsor, Ontario, Canada, on Tuesday, 4 February, 2025.
Bloomberg Bloomberg Gety pictures
Some of the world’s largest car manufacturers’ shares appeared amazingly on Thursday, even after US President Donald Trump raised 25 % tariffs on foreign car imports He entered into force.
Germany Volkswagenand Mercedes Benz collection and BMW All of them were circulated about 3 % at 3:15 pm London time (10:15 am EST), while on the Milan list Stelantis – Who has the names of families including Jeep, Dodge, FIAT, Chryler and Peugeot – I was immersed 4.5 %.
United States, Ford and General Motors Both were about 3 % less.
Analysts and economists said that the relatively silent response of car stocks can partially be attributed to an exemption from Canada and Mexico – where many car makers have production centers – from Trump’s very expected “mutual” advertisement.
In a big speech, Trump said on Wednesday that his plan would put a 10 % basic tariff in all fields, at 34 % targeted tariff rates on China, 20 % on the European Union and 46 % in Vietnam.
The White House said that Canada and Mexico will exempt from the primary tariff rate by 10 %, as well as from the mutual fees for specific countries at the present time.
“The long -awaited US mutual definitions were large and wide, but they are decisively exempt in Canada and Mexico (at least at the present time) through the trading compatible with CUSMA/USMCA”, economists in RBC Capital Markets He said In a research note published on Wednesday.
“The definitions related to imports from Canada are still in scheduled to rise on Thursday,” said Nathan Junzen and Clair Van in RBC.
They added: “This increase will remain important, but it seems small now compared to the highly high definitions that are scheduled to be imposed on other countries.”
The car transport truck makes its way to the ambassador bridge to cross to the United States in Detroit on April 1, 2025 in Windsor, Canada.
Bill Bogliano Gety pictures
Trump was previously Declare 25 % tariffs on all imported vehicles, with fees entering into force as of Thursday. The White House said that a tax on auto parts will be launched on May 3.
The president’s underdeveloped advertisements on the definitions that have been concerned about international investors and executives of companies and trading partners in the United States have caused in recent months.
“The huge uncertainty”
On Thursday, Rico Loman, an economist in the first sector of transportation and logistics services at Dutch Bank ing, said on Thursday that the initial flexibility in the auto sector can be partially explained by investors who have received some clarity on the Trump tax by 25 % on auto imports, said Rico Loman, an economist in the first sector of transportation and logistics services at Dutch Bank ing.
In response to a question about whether the exemption of Canada and Mexico from the new tariff system may prove support for the shares of cars, given that these two countries are an integral part of the supply chain in North America, Loman said that there is still a “state of great uncertainty” about the impact of the “mutual tariff” policy in Washington.
He added that the imposition of the American customs tariff is likely to lead to a “significant increase” in prices and a sharp decrease in car sales in the coming months.
US President Donald Trump speaks during an event announcing a new tariff in the Roses Garden in the White House in Washington, April 2, 2025.
Chip Somodevilla | Gety pictures
“We have these definitions and a lot of pricing effect on stock prices, especially after the announcement of last week and before that,” Luman told CNBC.
“The influence will be feeling quickly,” Luman said.
A “big blow” for auto manufacturers
“I think investors will interact by reducing their exposure to the sector,” Thomas Bisson, Kepler Cheuvreux, told CNBC ‘.Squawk Box Eurobe“Thursday.
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