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The U.S. levies are likely to disrupt the complex supply chains of major carmakers, hitting companies that export vehicles from Mexico, Canada Japan, South Korea and Germany.
- March 27, 2025, 6:12 a.m. ET
Shares in automakers around the world tumbled on Thursday after President Trump announced plans to impose a 25 percent tariff on imported cars and some parts beginning next week.
Among the hardest hit were carmakers based in Germany, Japan and South Korea, which sell many of their cars in the United States and rely on complex supply chains that cross borders, including from production sites in Mexico and Canada.
Shares in Germany’s Volkswagen, Europe’s largest automaker, fell 2 percent. Other German carmakers like Mercedes-Benz and BMW dropped 2 to 4 percent in early European trading.
Stellantis, the parent of Chrysler, Fiat, Jeep, Peugeot and Ram, saw its European shares fall about 4 percent.
The stocks of Japan’s Toyota Motor, Honda Motor and Nissan Motor all fell about 2 percent in Tokyo. Shares in South Korea’s Hyundai Motor and Kia fell 3 to 5 percent.
The major Detroit carmakers, which build some of their vehicles in Canada and Mexico, were also hit hard. Shares in General Motors were down more than 6 percent in premarket trading and Ford shares were 3 percent lower.
The slump in auto stocks pulled down the benchmark stock indexes in big exporting countries. Germany’s DAX fell nearly 1 percent, while South Korea’s KOSPI dropped 1.4 percent and Japan’s Nikkei 225 was down 0.6 percent.
The fallout in stock markets on Thursday was particularly concentrated in the car industry. Futures for the S&P 500 index suggested it would open slightly stronger, after it dropped more than 1 percent on Monday on news that auto tariffs would be announced after the market closed.
Nearly half of all vehicles sold in the United States are imported, as well as nearly 60 percent of the parts in vehicles assembled in the United States.
Shares in Tesla, which is set to suffer less from tariffs than its competitors because it makes all the cars that it sells in the United States in California and Texas, were slightly stronger in premarket trading. Mr. Trump said Wednesday that Elon Musk, Tesla’s chief executive who has taken a leading role in the White House, had not influenced his decision to impose tariffs.
Eshe Nelson is a reporter based in London, covering economics and business news for The New York Times. More about Eshe Nelson
