Automotive sector rattled by Trump tariffs

Due to come into effect on 2^nd April, the tariffs are the latest step in an accelerating trade war between the US and its partners and allies, and are expected to be followed by levies on a wide-range of other imported goods.

The announcement triggered an immediate fall in the share price of car makers around the world with Vauxhall maker Stellantis seeing a 6.4 per cent drop and the world’s biggest carmaker Toyota seeing a two per cent fall. Shares in US car makers have also taken a hit, with General Motors seeing a fall of 6.2 per cent and Ford losing 4.7 per cent.

Indeed, whilst president Trump has claimed that the tariffs will help revive the US automotive industry and lead to “tremendous growth” for the sector, most analysts and industry leaders are warning that the precise opposite will happen, and that the tariffs will dent US car production, drive up US car prices and impact jobs.