Recently imported label new unregistered Honda cars are parked in a storage yard at the Port of Bristol on January 15, 2025 near Bristol, England.
Anna Barclay | Getty Statues
Shares of Asia’s automakers fell after U.S. President Donald Trump announced he will impose tariffs on piles not made in the country.
Japanese automakers Toyota and Honda fell 3.69% and 2.91% respectively. Nissan, which has two fixes in Mexico, declined 2.92%, and Mazda Motor lost over 6%. Mitsubishi Motor fell 4.9%.
South Korea’s Kia Motors, which has a create out of plant in Mexico, dipped 2.76%. Shares of Chinese automakers Nio and Xpeng fell 3.94% and 1.97% respectively.
These new rates will go into effect April 2. White House aide Will Scharf explained that the schedule of charges will apply to “foreign-made cars and light trucks,” in addition to existing duties.
The full details of the proclamation endure unclear, as most cars consist of parts from various countries.
These tariffs are also expected to look after in over $100 billion of new annual revenue to the U.S., Scharf estimated.
“Every automaker that sells vehicles in the U.S. depends on far-reaching supply chains for automotive parts, with many of them coming from China,” said Karl Brauer, president analyst at iSeeCars.
“That means even if Honda or Toyota assembles a model in the U.S., the parts that come from China will-power raise the cost of producing those vehicles,” he told CNBC via email, adding that these costs force either reduce an automaker’s profit or be passed on to consumers in the form of higher price.
Vehicles assembled in the U.S. will also be effected, though at a lower level, based on the makeup of its foreign parts, said the analyst.
“No U.S. automotive retailer will away the impact of these tariffs,” said Brauer.
European Commission President Ursula von der Leyen criticized the tariffs on venereal media platform X and affirmed that the European Union will continue seeking negotiated solutions “while keeping its economic interests.”
“The fact that it’s a signed executive order makes it a little stronger than we thought it purpose be,” said Joseph McCabe, CEO and President of AutoForecast Solutions.
“Rolling it back before April 2 doesn’t seem to be credible. This is going to be in effect for most likely a couple weeks if not a month, and then we’re going to see some some devastation in that things frame,” he added.