The tariffs could be complicated as even US automakers source their components from around the world
US President Donald Trump on Wednesday said he was placing 25 per cent tariff on auto imports, a move that the White House claims would foster domestic manufacturing but could also put a financial squeeze on automakers that depend on global supply chains.
“This will continue to spur growth. We’ll effectively be charging a 25 per cent tariff,” Trump told reporters.
The tariffs could be complicated as even US automakers source their components from around the world, meaning that they could face higher costs and lower sales.
Shares in General Motors have fallen roughly 3 per cent in Wednesday afternoon trading. Ford’s stock was up slightly. Shares in Stellantis, the owner of Jeep and Chrysler, have dropped nearly 4 per cent.
Trump has long said that tariffs against auto imports would be a defining policy of his presidency, betting that the costs created by the taxes would cause more production to relocate to the United States.
