The Impact and Challenges of the U.S. 25% Tariff on Imported Cars in the Global Automotive Market
U.S. President Donald Trump recently announced a steep 25% tariff on imported cars, shaking up the global automotive industry. Major car manufacturers and dealerships reacted swiftly to this policy, as it increases pressure on car prices, disrupts supply chains, and strains trade relations between the U.S. and its key allies. The market's reaction highlights the high level of uncertainty facing the automotive industry. Following the announcement, the stock prices of major European car brands plummeted, with companies like BMW, Mercedes-Benz, and Porsche collectively losing €5.5 billion (approximately NT$197.58 billion) in market value in a single day. Meanwhile, American automakers such as General Motors, Ford, and Stellantis also saw their stock prices decline, with Tesla being the only exception, as it relies less on imported vehicles and instead saw its shares rise.