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Takeaways from the Key Takeaways
- Shares of global auto stocks are falling in premarket trading Monday after U.S. President Donald Trump said in an interview over the weekend that he “couldn’t care less” if automakers increased their prices due to tariffs on vehicle imports.
- This week, the tariffs on imports of autos will be in effect.
- Shares of the Big Three automakers as well as those of Volkswagen's in German trading are also dropping.
Shares of global auto stocks are falling in premarket trading Monday after U.S. President Donald Trump said in an interview over the weekend that he “couldn’t care less” if automakers increased their prices due to tariffs on vehicle imports.
"I couldn’t care less, because if the prices on foreign cars go up, they’re going to buy American cars.” Trump replied in an interview to NBC News on Sunday when asked if he is concerned about car prices increasing after the tariffs.
Trump announced a 25% import tariff last week on foreign-made auto parts and cars that do not comply with the U.S. Mexico-Canada Agreement (USMCA). The levies are set to take effect “on or before 12:01 am ET April 3,” while those on auto-parts will start “no later” than May 3.
Shares of the “Big Three” automakers fell Monday morning. General Motors (GM), Jeep and Chrysler maker Stellantis STLA, and Ford (F), are all down more than 2% on premarket trading.
Meanwhile, shares of U.S. electric vehicle maker Tesla—whose CEO Elon Musk’s work with the Department of Government Efficiency has unnerved some investors and analysts—are down around 6%.
Shares of Japanese automakers Toyota (TM) and Honda (HMC) have fallen around 1% and 2%, respectively. Hyundai shares, which announced last week a roughly $21billion investment in the U.S.A., fell 3% in Seoul trading. Volkswagen shares are down by 4% in German trading.
