The border wall is shown in a background as a semi-truck carrying Toyota trucks crossed a bridge after cleaning American customs while entering the United States from Mexico on the border in San Diego, California, US, 4 March, 2025.
Mike Blake | Roots
Auto stocks digest 25% tariffs on some automobile parts along with President Donald Trump’s announcement that he “not made in the United States”.
Trump’s administration was planning to impose tariffs on the auto industry, but the impact of those moves and mechanisms for enforcement is starting to take sharp. Trump said the tariffs would be applicable on 2 April.
General Motors On Thursday, the stock was about 6% in early trade, while Descendant Lost more than 1%. TeslaHowever, there was a minor more Ford Motor Shares were hovering around the flat line.
“In our coverage, for (original equipment manufacturers), Tesla and Ford vehicles seem to be the most given place of assembly facilities, although Ford faces older risk on imported engines,” Dutash bank analysts have written in a note on Thursday. “GM has the highest risk for Mexico.”
Trump said on Wednesday that he would not put tariffs on vehicles made in America
The White House stated in a fact sheet that tariffs apply to major automobile parts including imported passenger vehicles and light trucks -engines and broadcasting.
Vehicles are made up of thousands of parts, many of which cross the front and back on the US border before the final product is completed.
Data and forecast firm S&P global mobility The report consists of an average of 20,000 parts in a vehicle when it is torn for its nuts and bolts. Parts can arise anywhere from 50 to 120 countries.
The firm also states that 25 vehicle manufacturers produce 63,900 light-duty passenger vehicles per day in North America. Most of them, around 65%, have gathered in the US, followed by 27% in Mexico and 8% in Canada.
Goldman Sachs analysts wrote on Thursday that Trump’s 25% of tariff imported cars can increase from $ 5,000 to $ 15,000. If about 50% of the US-made car come from foreign sources, the tariff can increase the price of those cars from $ 3,000 to $ 8,000, he said.
The President had earlier given a one-month tariff exemption for a month’s tariff exemption for vehicles to follow the trade rules of the United States-Maxico-Canada Agreement.
– Michael Wiland and Michael Bloom of CNBC contributed to this report.
