March 27, 2025 — Global Markets Desk : Global automaker stocks plunged on Thursday after U.S. President Donald Trump announced a 25% tariff on imported cars and auto parts, set to take effect next week. The move has sent shockwaves through the automotive industry, threatening to disrupt international supply chains and strain trade ties with key allies.
Global Carmakers Take a Hit
The tariff announcement triggered a broad sell-off in auto stocks across Europe and Asia. Leading the decline were German, Japanese, and South Korean carmakers, which depend heavily on U.S. sales and cross-border production.
Volkswagen, Europe’s largest carmaker, saw shares drop 2%
Mercedes-Benz and BMW also lost between 2% to 3%
Stellantis, parent of Fiat, Chrysler, Peugeot, and Jeep, fell nearly 4%
In Asia:
In the U.S., General Motors shares fell over 6% in premarket trading, while Ford shares initially tumbled before stabilizing. India’s Tata Motors, which owns Jaguar Land Rover, lost nearly 6%, as JLR imports all vehicles sold in the U.S.
Impact on Trade and Supply Chains
The auto industry is particularly vulnerable to trade shocks due to its complex global supply chains. Roughly half of all vehicles sold in the U.S. are imported, and nearly 60% of parts used in domestic assembly come from overseas.
For German carmakers, the U.S. is a vital market:
One-third of all Porsches are sold in the U.S.
One in six BMWs ships to American customers
German firms export around $8 billion worth of car parts to the U.S. annually
“Since all countries in the world are affected, it is likely to be difficult for countries like Germany to redirect cars to third countries and sell them there,” analysts at Commerzbank noted.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.
