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.

Since Donald Trump resumed office as the President of the United States on January 20 this year, his trade policies have once again become a focal point of global attention. In particular, for the automotive industry, Trump recently announced a plan to impose tariffs on imported cars, which could take effect as early as April 2. The goal is to address trade imbalances between the U.S. and other countries in a way that he believes is fairer while also strengthening the global competitiveness of American manufacturing. But what impact will Trump’s proposed automobile tariffs have on the global automotive industry?

The much-anticipated merger between Honda and Nissan, which made headlines across the global automotive industry, has recently been officially called off. This historic negotiation, which had the potential to form the world’s third-largest automotive group, came to an abrupt halt as Honda and Nissan failed to reach a consensus. As a result, Nissan once again finds itself in a survival crisis, urgently needing to seek new partners to stay competitive in the rapidly evolving global electric vehicle market, especially amid the rise of Chinese domestic brands.

Recently, the Gartner Digital Automaker Index released its second annual report on automotive digitalization. Covering 13,919 data points across nine major domains, the report evaluated 22 automakers. The results show that EV startups, led by Tesla, continue to dominate the digitalization trend, while traditional manufacturers such as Toyota face significant challenges.

The global electric vehicle market has become increasingly competitive in recent years. Even as it starts to cool down in certain regions, it has not diminished the enthusiasm of Chinese automakers to accelerate their establishment of overseas factories. Expanding abroad is not only a way to avoid import tariffs but also a crucial step in the global expansion strategies of Chinese automotive brands. Recently, following Volkswagen Group's announcement to close its automobile factories in Germany, there have been reports of Chinese brands expressing interest in acquiring the Dresden and Osnabrück plants. This highlights the importance Chinese companies place on the European market and indicates that China is poised to play a new role in the global automotive industry.

By the end of 2024, one of the most significant developments in the automotive industry was the announcement of the merger between Honda, Nissan, and Mitsubishi—three major Japanese automakers—in response to rapidly changing market dynamics. Around the same time, China’s BYD revealed that it had sold over 4.27 million new cars worldwide in 2024, a remarkable 42.3% increase compared to the 3 million units sold in 2023. Together, these events herald a new direction for the global automotive industry.

Two forces have impacted the global automotive industry since 2020, the rampant COVID-19 pandemic and the issue of net-zero emissions. Now we can say a consensus on banning the sale of new gasoline cars by 2035 is forming gradually in major markets around the world. The EU has announced such a ban, and in the U.S., California and New York state have passed laws (other states are expected to follow suit). China, the largest market, has not yet legislated against the sale of new gasoline cars, but their pace of electrification is so rapid I don't think binding rules and regulations will be needed at all. Considering the circumstances, auto giants have been rolling out transformation plans over the past two years. While it is simple to draw up plans, however, carrying out the plans can be overwhelmingly hard and complicated. "Time" no doubt imposes the greatest pressure on car manufacturers today. While 2023 is just around the corner, subversive changes will inevitably surface before you know it.