The Stellalantis Windsor assembly plant in Windsor, Ontario, Canada, on Tuesday, February 4, 2025.
Bloomberg | Bloomberg | Pictures of getty
The actions of some of the world’s largest car makers seemed surprisingly resistant on Thursday, even after the United States President Donald Trump, 25% of rates to foreign automobile imports came into force.
Germany Volkswagen, Mercedes-Benz Group and Bmw All traded about 2% lower at 13 hours in London time (8 am et), while Milan list list Estellantis It fell 1.6%. The actions of the Volvo cars in Sweden, however, decreased more than 11%.
Statesman, Ford and General engines They were around 2% lower in the previous trade.
Analysts and economists said that the relatively silenced response from car actions could be partially attributed to an exemption for Canada and Mexico, where many vehicle manufacturers have production nuclei of the « Reciplocked » long -awaited rates of Trump.
In an important speech, Trump said on Wednesday that his plan would establish an initial rate of 10% on the Board, with an even higher tariff rate of 34% in China, 20% in the European Union and 46% in Vietnam.
The White House said that Canada and Mexico would be exempt from the 10%reference rate rate, as well as the reciprocal rates for specific countries for the moment.
« The expected reciprocal rates of the United States announced have been large and wide, but they are critically Canada and Mexico (at least for the moment) through trade compatible with CUSMA/USMCA », RBC Economists Capital Markets he said In a research note published Wednesday.
« Canada’s import rates are still increasing on Thursday. The automatic rates announced last week will still promote the United States average rate of Canada imports to approximately 3.5% of 2.5% for our count, » said Nathan Janzen and Claire fan of RBC.
« This increase will still import, but now it seems small compared to the highest dramatic rates that are imposed in other countries, » they added.
A range of Volkswagen AG cars inside a Autostadt delivery tower at VW headquarters in Wolfsburg, Germany, on Tuesday, March 11, 2025.
Krisztian Mr. Bloomberg | Pictures of getty
Trump had it previously announced A 25% rate on all imported vehicles, with the charges in force from Thursday. The White House has said that a tax for car pieces will be launched on May 3.
President’s decline on rates has alarmed world investors, corporate executives and commercial partners in the United States in recent months.
“Huge uncertainty”
Rico Luman, an economist in the Senior Transportation and Logistics Sector at Dutch Bank Ing, said on Thursday that the initial resilience of the automobile sector could be partly explained by investors who have a clarity about Trump’s 25% tax on automobile imports.
Asked if the Canada and Mexico exemption from the new tariff regime could be supportive of Autos’s stocks, since these two countries are members of the North -American supply chain, Luman, said that there is still « enormous uncertainty » on the impact of Washington’s « reciprocal rate » policy.
He added that the imposition of U.S. rates would probably trigger « important » prices of prices and a sharp drop in vehicle sales over the coming months.
United States President Donald Trump speaks during an announcement event of « Make America Wealthy Again » in the Roses Garden of the White House on April 2, 2025 in Washington, DC.
Chip Somodevilla | Pictures of getty
« We have these rates and much of the impact is already priced, I would say that, in the prices of the shares, especially after the announcement last week and before that, » Luman told CNBC for video call.
« The impact will be quickly felt, I would say that in terms of car prices because there are limited actions. There are shares, but not for months and months. There have been some frontal load, but after the shares are seen, the prices will be increased, in my opinion, because the margins are quite limited, » said Luman.
“A substantial success” to automobile manufacturers
« I think investors will probably react to reducing their exposure to the sector, » said Thomas Besson, head of Kepler Cheuvreux autos research, told CNBC « A CNBC » « Squawk Box Europe« Thursday.
« We now have confirmation that for automobile manufacturers, there will be a substantial success with some of the OEMs, especially Porsche AgStellalalalantis or Volvo cars affected more, but also affected names like Mercedes, BMW or Volkswagen, « said Besson.
“We only have an immune automobile manufacturer to this fare news RenaultBecause they have no direct exposure to space, but everyone else is, « he added.
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