Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Trump’s car tariffs wipe billions off European automakers as global trade war escalates

by March 27, 2025
March 27, 2025
Trump’s car tariffs wipe billions off European automakers as global trade war escalates

A sweeping new round of tariffs from President Trump has sent shockwaves through global markets, wiping billions of euros off the value of major European carmakers and dealing a fresh blow to the UK’s automotive sector.

Trump’s decision to impose a 25 per cent tariff on all imports of cars and parts into the US — set to take effect on 2 April — triggered sharp selloffs in global equities, with automakers bearing the brunt.

Shares in German giants Mercedes-Benz, BMW, Porsche and Volkswagen fell between 2 per cent and 5 per cent, while Stellantis — parent company of Vauxhall, Fiat, Citroen and Peugeot — dropped 6 per cent in Paris. In London, luxury carmaker Aston Martin fell 4.47 per cent, dragging the FTSE 100 index down 0.6 per cent to 8,638.04. Germany’s DAX lost 1.42 per cent and France’s CAC 40 slipped 1 per cent.

The fallout wasn’t limited to Europe. In after-hours US trading, General Motors fell 8 per cent and Ford 3.7 per cent. Asian markets followed suit, with Toyota, Nissan, Mazda, Hyundai and Kia all dropping, while Tata Motors — parent of Jaguar Land Rover — fell 5 per cent on India’s stock exchange.

The new tariffs threaten a vital lifeline for the UK automotive industry. The US is the UK’s second-largest car export market, accounting for nearly 17 per cent of total exports, or around 79,000 vehicles in 2024, according to the Society of Motor Manufacturers and Traders (SMMT). Exports to the US had surged by 38.5 per cent last year, even as exports to the EU and China declined sharply.

Nissan, which operates the UK’s largest car plant in Sunderland, exported more than 73,000 vehicles to the US last year — a full 10 per cent of its total UK output. Meanwhile, luxury marques like Rolls-Royce, Aston Martin and McLaren are heavily reliant on US sales.

The SMMT warned that nearly eight in ten cars made in Britain are exported, with any disruption to international trade posing a serious threat to the industry’s recovery.

Even before the tariffs were announced, British car production was struggling. Output fell 11.6 per cent in February, marking the twelfth consecutive month of declines, according to SMMT data released overnight.

President Trump defended the tariffs, claiming the US was “the piggy bank that everybody steals from.” He views tariffs as a tool to raise revenue to pay for tax cuts and revive domestic industry — even as economists warn of higher prices, supply chain disruption, and retaliatory trade action.

Trump has threatened even harsher tariffs if trading partners respond in kind. “If the EU and Canada team up to retaliate, we’ll go further,” he warned.

In response, Canadian Prime Minister Mark Carney condemned the tariffs as a “direct attack” and pledged to defend national interests, while Japan and South Korea signalled emergency responses were being prepared. European Commission President Ursula von der Leyen said the EU would continue to pursue “negotiated solutions while safeguarding its economic interests.”

In the UK, Chancellor Rachel Reeves told Times Radio that talks were under way to secure a trade agreement with the US to avoid the tariffs. However, economists warned that even if the UK is spared direct inclusion, the knock-on effects could be damaging.

David Miles, economist at the Office for Budget Responsibility, said: “There is a growing realisation that we could be in for a major blow to trade that wasn’t there a few weeks ago.”

The OBR now forecasts that if global trade tensions escalate into a full-blown tariff war — with average import duties rising by 20 percentage points between the US and its partners — UK GDP could shrink by up to 1 per cent at its peak.

With tariffs set to take effect from 3 April and further retaliatory measures on the horizon, the risk of a full-scale trade war is growing. For UK and European carmakers already under pressure, Trump’s latest move could not have come at a worse time.

Read more:
Trump’s car tariffs wipe billions off European automakers as global trade war escalates

0
FacebookTwitterGoogle +Pinterest
previous post
Civil service job cuts will drive efficiency and open new opportunities, says policy recruiter
next post
UK warned of £600bn debt interest bill as borrowing soars

You may also like

TUC warns that removing bankers bonus cap will...

October 31, 2023

The Most Common Mistakes Teams Make When Pitching...

December 10, 2024

How Bitcoin Wallet Recovery Can Save Your Crypto...

January 26, 2024

Innovate UK awards £1.2m to University led West...

September 7, 2023

BT scraps diversity targets from managers’ bonuses

February 6, 2025

Buoyant NatWest to return billions to shareholders

July 29, 2022

Deciphering Market Trends: The Compass of Trading Indicators

May 7, 2025

Business owners share opinions and look to the...

July 9, 2024

Leveragesix.com Review | How LeverageSix Shapes a More...

December 8, 2023

Proposed development of Las Vegas-style Sphere in east...

January 9, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025
    • House witness flips script on Dem who ambushed him during hearing with unearthed tweet: ‘Iceberg is ahead’

      June 7, 2025
    • Call with China’s Xi, and Trump-Musk exchange fueled barbs during 20th week in office

      June 7, 2025
    • Trump’s conservative allies warn Congress faces critical ‘test’ with $9.4B spending cut proposal

      June 7, 2025
    • Tech ETFs are Leading Since April, but Another Group is Leading YTD

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,567)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved