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U.S. Announces Tariffs on Auto Imports, Impacting Volkswagen, Mercedes-Benz, and BMW
President Trump has announced plans to impose a 25% tariff on imported cars, semiconductors, and pharmaceuticals, starting from April 2, 2025. The aim is to encourage domestic production and create jobs in the United States.
Stocks of Mercedes-Benz, Volkswagen, and BMW were under the spotlight on stock exchanges due to the trade concerns. While the tariffs barely reacted the stocks initially, falling by less than one percent in after-hours trading, it is uncertain whether the import restrictions will be implemented by the stated date.
The tariffs might lead to increased costs for vehicles sold by these automakers in the U.S., resulting in higher prices for consumers, reduced sales volumes, or margin pressures. However, the charts for these automakers are currently pointing upwards, suggesting a potential technical gain.
BÖRSE ONLINE recommends buying Volkswagen, Mercedes-Benz, and BMW at the current time.
As for semiconductors and pharmaceuticals, while they have been discussed for potential tariffs, current major actions primarily focus on automobiles, steel, and aluminum.
The newly enacted tariffs increase the average effective tariff rate for U.S. consumers to its highest level in decades, leading to substantial consumer losses, particularly for lower-income households.
In response to the tariffs, these automakers may face incentives to increase U.S. production or local content, potentially altering their supply chains to mitigate the tariff effects in the long run.
The proposed tariffs on imported cars, including those from Mercedes-Benz, Volkswagen, and BMW, could lead to increased production costs, potentially influencing the final prices for consumers. Moreover, the technology sector, specifically semiconductors, might also be affected as potential tariffs are under consideration, influencing both the automotive and tech finance sectors.
