The news: President Donald Trump’s 25% blanket tariff on auto imports, including parts and assemblies, will reshape the cost structure of car manufacturing. The tariffs, which could take effect April 3, will hit foreign automakers as well as US-based operations reliant on global supply chains.
Market reaction to impending tariffs was swift. Toyota, Stellantis, Porsche, and Ford stocks all fell Wednesday. Tesla bucked the trend—likely due to its US-centric production, per Bloomberg.
Foreign and domestic automakers caught in a bind: Trump said Wednesday that he expects automakers will relocate to the US to build new factories to serve the American market. “If you build your car in the US, there’s no tariff,” he said.