Jeep and Dodge-owner Stellantis (STLA) tumbled again on Monday as automaker stocks were sent into reverse on Donald Tru amp’s tariff moves, extending losses to about 18% in the last month.
Tariffs of 25% on all cars imported into the United Stares are due to take effect tomorrow, April 2nd, the same day as so-called reciprocal tariffs are due to be placed on America’s main trading partners.
Stellantis shares in Milan (IT:STLAM) fell more than 3%, while other European auto stocks were down as investors brace for the full effect of tariffs, which some reports indicated could be broader and higher than previously thought. Volkswagen (VWAGY) was also lower as its Frankfurt-listed stock (DE:VOW) fell close to 4%. Porsche (POAHY) was down by a similar margin.
Earlier, Japanese auto makers were hit as the Nikkei 225 plunged 4% amid heightened worries about the impact of tariffs on the nation’s car industry. Honda (JP:7267) and Toyota (JP:7203) both declined by around 3%, while Nissan (JP:7201) was down 4%. Their New York-listed entities (HMC), (TM) and (NSANY) were set to open lower.
About six percent of Japan’s total exports are cars shipped to the US, according to Moody’s Analytics. “Such a sizeable tariff hike will undermine confidence, hit production and reduce orders. Given the long and complex supply chains in car manufacturing, the impact will ripple through these countries’ economies,” the firm said in a note seen by AFP.
The ripples from tariffs continue to be felt by others like General Motors (GM) which was called to open down another 1% or so to take its year-to-date losses to 10%, and down close to 25% from its recent high in December. Ford (F) declined about 1% in premarket trade as well.
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