empty
28.03.2025 12:44 AM
New Tariffs on Cars: How They Will Hit the Stock Market and Automakers

The U.S. stock market faced pressure after 25% tariffs on imported cars were announced. President Donald Trump signed an executive order introducing new duties on foreign-manufactured automobiles starting this April.

These measures are aimed at supporting domestic production but have raised concerns about a potential escalation of the trade war, which has already led to a decline in shares of major automakers.

How the stock market reacted to the new tariffs

The tariff news triggered a sharp reaction from investors. The S&P 500 fluctuated throughout the day, while the tech-heavy Nasdaq posted moderate gains, recovering earlier losses. However, automaker stocks fell sharply, especially those reliant on international supply chains.

  • General Motors (GM) lost 6% amid fears of rising costs and potentially lower sales.
  • Ford (F) also dropped, as many parts are sourced abroad.
  • Stellantis, which owns brands like Jeep, Dodge, and Chrysler, faced uncertainty due to its reliance on the European market.
  • Toyota, Mercedes-Benz, and other foreign automakers also came under pressure from investors, as the new tariffs directly impacted their U.S. operations.

Some companies, such as Tesla, may benefit from the situation since their production is concentrated in the U.S. and does not depend on imported vehicles. This gives them a competitive edge, already reflected in the positive movement of their stock.

This image is no longer relevant

Economic impact: inflation, rising costs, and trade war risks

Analysts are particularly concerned about the inflationary pressure that these new tariffs may cause. Higher costs for imported cars will inevitably lead to increased prices in the market, potentially affecting consumer demand. Increased production costs for automakers will also impact end prices, which could trigger slower sales and even job cuts within the industry.

Moreover, Canada and the EU have already signaled their readiness to take retaliatory measures. If the trade war intensifies, it could negatively affect the auto industry and the broader U.S. economy, adding further volatility to the stock markets.

Opportunities for traders

Despite the negative impact on certain companies, traders can take advantage of the current situation.

Shorting automaker stocks: If pressure on the industry continues, shares of giants like GM, Ford, and Stellantis may continue to fall. Selling shares to buy them back at a lower price is one way to profit during market turbulence.

Betting on Tesla and other domestic manufacturers: Companies not reliant on imports may gain a competitive edge, making their stocks more attractive for long-term investors.

Trading volatility: Such news triggers sharp price swings, creating opportunities for short-term trades using CFDs.

Profit from the news with InstaTrade

Every day presents new trading opportunities, and the key is knowing how to take advantage of them. InstaTrade provides easy access to trading shares of major U.S. companies, along with tight spreads and competitive commissions. By staying informed about events, analyzing the market, and making the most of market volatility, you can maximize your trading potential with InstaTrade!

Ekaterina Kiseleva,
Analytical expert of InstaTrade
© 2007-2025

Recommended Stories

USD: Fraqueza Visível, Força Escondida — O Jogo Continua

Uma nova fase começa no mercado cambial, em que fundamentos econômicos e estratégias geopolíticas passam a moldar a taxa de câmbio do dólar americano. A administração dos EUA está

Anna Zotova 20:23 2025-05-16 UTC+2

Resumo de notícias do mercado dos EUA para 16 de maio

As ações da Micron Technology continuam sua trajetória de recuperação, impulsionadas por sinais técnicos positivos. Investidores estão de olho nas metas de preço de 117,34 e 137,12, o que torna

Ekaterina Kiseleva 16:25 2025-05-16 UTC+2

O STOXX 600 atinge os picos: para onde está indo o crescimento e o que aguarda os investidores

Cisco sobe após elevar suas previsões para o ano fiscal UnitedHealth cai com a notícia de que enfrenta uma investigação criminal O índice European STOXX 600 está pronto para

Thomas Frank 15:30 2025-05-16 UTC+2

Resumo de notícias do mercado dos EUA para 15 de maio

As ações do JPMorgan Chase seguem em alta constante, aproximando-se do nível de 295,25, impulsionadas pela forte demanda dos investidores e pelos sólidos resultados financeiros do banco. Esse movimento positivo

Ekaterina Kiseleva 18:40 2025-05-15 UTC+2

Montanha-russa no mercado de ações: AMD dispara, American Eagle cai, investidores ficam confusos

Índices mistos: Dow cai 0,21%, S&P 500 sobe 0,10%, Nasdaq sobe 0,72% Ações europeias recuam após quatro sessões de ganhos American Eagle Outfitters cai após retirar previsão para

Thomas Frank 14:43 2025-05-15 UTC+2

Resumo de notícias do mercado dos EUA para 14 de maio

As ações da IBM seguem em alta, sustentadas por sinais técnicos nos gráficos que indicam um possível movimento em direção ao nível de $265,90. O interesse dos investidores nos papéis

Ekaterina Kiseleva 15:52 2025-05-14 UTC+2

NRG Energy dispara após acordo de US$ 12 bilhões - novos atores no setor de energia?

Os índices subiram: Dow 2,81%, S&P 500 3,26%, Nasdaq 4,35% As ações superam os portos seguros com a flexibilização do comércio Apple sobe com relatório de aumento de preço

Thomas Frank 16:27 2025-05-13 UTC+2

Resumo de notícias do mercado dos EUA para 13 de maio

As ações do Citigroup vêm registrando ganhos constantes após o rompimento de níveis técnicos importantes, sinalizando potencial para a continuidade da tendência de alta. Participantes do mercado veem os papéis

Ekaterina Kiseleva 14:38 2025-05-13 UTC+2

Resumo de notícias do mercado dos EUA para 12 de maio

Os índices acionários dos EUA estão avançando em meio a uma onda de otimismo gerada pelo possível progresso nas negociações comerciais entre Washington e Pequim. Os investidores demonstram esperança

Ekaterina Kiseleva 16:53 2025-05-12 UTC+2

Esperança de paz comercial: Como as negociações entre os EUA e a China abalaram as bolsas de valores europeias

Mercados sobem: EUA e China estão se aproximando nas negociações comerciais. UniCredit no verde: lucro acima das expectativas, previsão aumentada. Farmacêuticas enfraquecem: ações de grandes empresas caíram de 1%

Thomas Frank 16:46 2025-05-12 UTC+2
Não pode falar agora?
Faça sua pergunta no chat.
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaTrade anyway.

We are sorry for any inconvenience caused by this message.