On March 26, 2025, U.S. President Donald Trump announced a 25% tariff on imported automobiles and parts, effective April 3, aiming to bolster domestic manufacturing and generate approximately $100 billion in annual revenue.
The tariffs have led to significant declines in global automotive stocks, affecting companies like Toyota, Honda, Nissan, Hyundai, Volkswagen, and Mazda. U.S. manufacturers General Motors and Ford also experienced stock drops, while Tesla faced a smaller decrease due to its limited exposure to foreign competition.
Critics argue that these tariffs will increase vehicle prices, potentially impacting middle- and working-class consumers, and may disrupt established supply chains across North America. Foreign leaders, including those from Japan and Canada, have expressed concerns about potential retaliatory measures and the broader implications for global trade.
