Mounting plant Windsor Stellantis in Windsor, Ontario, Canada, on Tuesday, February 4, 2025.
Bloomberg Bloomberg Getty images
The actions of some of the largest cars in the world seemed surprisingly resistant on Thursday, even after the US President Donald Trump 25% tariffs for foreign car imports will come into force.
Germany VolkswagenIN Mercedes-Benz Group AND BMW They all traded about 2% lower at 13:00 London time (8 am et), while on the Milan list on the list Stellantis – which is the owner of household names, including Jeep, Dodge, Fiat, Chrysler and Peugeot – fell by 1.6%.
However, Volvo's Swedish cars have fallen by over 11%.
Condition, Ferry AND General Motors They were both about 2% lower in trade in front of the market.
Analysts and economists said that the relatively subdued reaction of car actions can be partially assigned to release for Canada and Mexico – where many car manufacturers have a production center – from the very expected “mutual” announcement of Trump tariffs.
In a serious speech, Trump said on Wednesday that his plan would establish a 10% basic tariff around the world, with even higher tariff rates of 34% in relation to China, 20% in relation to the European Union and 46% in Vietnam.
The White House said that Canada and Mexico would be exempt from the starting 10% tariff rate, as well as from mutual fees for specific countries.
“The long -awaited American tariffs were announced large and wide, but critically released from Canada and Mexico (at least for now) through trade in accordance with Cusma/Usmca”, economists from RBC Capital Markets he said In a research note published on Wednesday.
“Tariffs for imports from Canada will continue to increase on Thursday. The car tariffs announced last week will continue to exceed the average rate of American tariffs for imports from Canada to about 3.5% from 2.5% according to our number,” said RBC Nathan Janzen and Claire Fan.
“This growth will continue to matter, but now it looks small compared to radically higher tariffs that are to be imposed on other countries,” they added.
The car truck goes to the Ambassador bridge to go to the United States in Detroit on April 1, 2025 at Windsor, Canada.
Bill Pugliano Getty images
Trump earlier announced 25% tariff for all imported vehicles with fees against Thursday. The White House said that car parts tax will be launched on May 3.
In the last months of the president's announcement, global investors, corporate directors and US trading partners worried.
“Huge uncertainty”
Rico Luman, a senior economist of the transport and logistics sector at the Dutch bank, said on Thursday that the initial immunity in the automotive sector can be partly explained by investors at the 25% Trump fee for car imports.
Asked whether the release of Canada and Mexico from the new tariff system could confirm car actions, taking into account that these two countries are an integral part of the North American supply chain, Lanman said that there is still a “huge uncertainty” about the impact of the policy of the “Washington mutual tariff”.
He added that the imposition of American tariffs would probably cause “significant” price increases and a sharp decline in car sales in the coming months.
US President Donald Trump speaks during the event “Make America Brogy Again” in a commercial advertisement at Rose Garden in the White House on April 2, 2025 in Washington.
Somodevilla chip Getty images
“We have these tariffs, and a lot of influence is already priced, I would say, in action prices, especially after the announcement from last week, and earlier,” said Lanman CNBC in connection with the video conversation.
“The impact will be felt quickly, I would say when it comes to car valuation, because there are limited supplies. There are supplies, but not for months and months. It was some front, but after selling the stocks, prices will be raised because the margins are quite limited,” said Luman.
“A significant hit” for car manufacturers
“I think that investors will probably react, reducing their exposure to the sector,” said CNBC Thomas Besson, head of Autos Research at Kepler Cheuvreux, CNBC “Squawk Box Europe“On Thursday.
“We are now confirming that in the case of car manufacturers there will be a significant hit with some OEM manufacturers, especially Porsche AGStellantis or Volvo Cars most affected, but also names such as Mercedes, BMW or Volkswagen – said Besson.
“We really have only one car manufacturer who is resistant to these tariff messages, i.e. RenaultBecause they do not have direct exposure to space, but everyone else – he added.