The cars collapsed at Wall Streetserving a heavy impact of duties announced by President Trump on imported cars. In fact, the decision will have a negative impact on all, also on the cars produced in the USA, which still import the component necessary for the production of their models, especially the batteries electric or hybrid cars. A decision that will therefore have an aggravation on the American economy, in terms of missed sales and also of jobs. An alarm was also launched by Elon Muskowner of Teslawhich in one post on X wanted to emphasize this aspect.
Car sector down to Wall Street and elsewhere
The US car manufacturers and their rivals were affected by the announcement of the duties and slipped to Wall Street last night. The actions of General Motors 8% collapsed in the After-Market session, while Ford they collapsed by 4.5%. Badly StellantisChrysler’s mother house, whose shares are listed on the New York Stock Exchange, which has lost over 4%. Badly Teslawho sold 5.6%.
Follow here the direct bags
The losses are also rampant this morning on the Asian markets, with Toyota Motor, Honda and Hyunday which highlighted losses between 3% and 4%. And for the opening of the European markets, nothing good is expected, with the same Stellantis, Renault, Volkswagen, BMW And the other houses in Focus in the aftermath of the announcement.
The impact of duties
It is estimated that the new taxes, if maintained for a prolonged period, could add thousands of dollars to the average purchase cost of an American vehicle and hinder the production of cars throughout North America. This is due to the interconnections in the production of vehicles between Canada, Mexico and the United States, after three decades of free trade. According to the research company Globaldataalmost the half of all cars sold In the United States the year was imported.
Also Autos Drive Americaorganization that represents foreign car houses in the USA, such as Honda, Hyundai, Toyota and Volkswagen, said that the duties will make it more expensive to produce and sell cars in the United States, bringing higher prices, less alternatives for consumers e less jobs in the manufacturing sector.
According to the calculations of Cox Automotivethe duties will get on $ 3,000 the cost of a vehicle produced in the United States and of 6,000 dollars those produced in Canada or Mexico. COX also includes, by mid -April, an interruption of the production of North American vehicles, with an estimated impact in 20,000 vehicles less per day, or a drop of about 30% of the production.
Musk’s alarm
Also Elon Musk He launched an alarm on the impact of the duties, stating that they do not spare Tesla. In an X post, the patron of the company that produces electric cars said that the duties will also affect Tesla, since they “will affect the price of the components of the Tesla cars that come from other countries” and that “The impact on costs is not negligible.”
Tesla produces all its cars in the USA, but it matters some parts, primarily electric components and batterieswhich come from China. The increase in the cost of components, especially the batteries, will have a large impact on the overall cost and therefore on the sale price, in a phase not propitious for Tesla, whose Sales in February collapsed by 40% For the second consecutive month. Tesla is also facing a boycott of consumers in Europe and the USA for the incursion of Musk in politics.
Trump excludes impacts on Tesla
Trump denied that the duties could have negative impacts for Tesla and, he said that, indeed, they will be overall neutral if not even “A good” pearl home of American electric cars. The president then specified that his close ally Elon Musk did not recommend it regarding the cars rates.
