The U.S. administration’s 25-percent tariffs on imported vehicles are having a predictably terrible effect on the stock market. Since April 1st, the stocks of several auto manufacturers and suppliers have dropped significantly.
Manufacturers
For the moment, Stellantis is the most affected automaker, with an 11.1 percent drop in its share price over the past three days. Mercedes-Benz with a 8.27 percent drop is also being hit hard. Figures were reported by Automotive News.
General Motors and Honda have seen respective losses of 6.14 percent and 5.69 percent. Volkswagen is down 3.99 percent, while Ford’s stocks fell by 3.02 percent, although its stocks rallied by 1.05 percent from Thursday to Friday.
It should be noted that Tesla is also being hit hard, but in its case the slide has been ongoing for a while; the tariffs have only exacerbated that slide.
Suppliers
Suppliers have by and large had it even worse since April 1st. A few examples:
- - American Axle & Manufacturing Inc. - down 14.8 percent
- - Dana Inc. – down 14.71 percent
- - Cooper Standard Holding Inc. – down 11 percent
- - Aptiv – down 10.76 percent
- - Cummins – down 9.77 percent
A notable exception among the group: Goodyear, up 10.23 percent.
Nvidia stocks have fallen by 13.06 percent; Qualcomm’s by 12.78 percent; and Intel’s by 5.10 percent at Intel.
Major dealership groups in the United States have also seen drops, but much smaller in their case negligible. The well-known Penske empire has lost 1.02 percent, for example. We can guess that some groups are actually up, especially if their vehicles is less or not impacted by the tariffs.
Overall, there’s no avoiding it: the automotive sector is severely affected by the tariffs, and it will get worse. Consequences are already being felt on both sides of the border, and if the situation doesn’t change in the coming weeks, the sector and the market will continue to suffer.
