The recently imported brand newly unregistered Honda Automobili were parked at a warehouse at the Bristol port of January 15. January 2025. Near Bristol, England.
Anna Barclay | Getty Images
The sections of Asian car manufacturers fell after US President Donald Trump announced that they would impose tariffs on cars not made in the country.
Japanese car manufacturers Toyota and Honda fell 3.69%and 2.91%. Nissan, which has two plants in Mexico, reduced 2.92%and the Mazda engine lost over 6%. The Mitsubishi engine dropped 4.9%.
Kia Motors South Korea, which has a Mexico production plantdipped 2.76%.
These new tariffs will enter into force on April 2. White House assistant Will Scharf explained that the tariffs would be applied to “cars and lightweight trucks with a side”, except for existing duties.
The complete details of the proclamation remain unclear because most cars consist of parts from different countries.
These tariffs are expected to bring over $ 100 billion in new annual revenues in the United States, Scharf estimated.
“Each car manufacturer who sells vehicles in the US depends on the global chains of car supply for car parts, and many of them come from China,” said Karl Brauer, an executive analyst at ISCARARS.
“This means even if the Honda or Toyota make up the model in the US, the parts coming from China will increase the cost of the production of these vehicles,” he told CNBC via E -Stage, adding that these costs or reduced the profit of the car manufacturer or be forwarded to consumers in the form of higher prices.
The vehicles gathered in the United States will also be affected, although at a lower level, based on component foreign parts, said an analyst.
“No American car sales car will avoid the impact of these tariffs,” Brauer said.
European Commission President Ursula von der Leyen criticized Tariff On the social media platform x and confirmed that the European Union will continue to seek negotiating solutions “while protecting its economic interests.”
