American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

Beyond car stocks: Donald Trump’s tariffs threaten global auto supply chains

by admin March 29, 2025
March 29, 2025
Beyond car stocks: Donald Trump’s tariffs threaten global auto supply chains

US President Donald Trump’s plan to impose tariffs on imported vehicles is sending shockwaves far beyond the Detroit auto industry.

The policy is adding to investment risk and is set to hit global supply chains connected to the vast automotive sector, with potentially significant consequences for emerging economies like Thailand.

Thailand in the crosshairs: a vulnerable auto hub

“South Korea is most exposed, followed by Japan. Within ASEAN, Thailand — a regional manufacturing hub — is most vulnerable,” Nomura economists wrote in a note on March 27 about the auto tariff risks in Asia.

Thailand, a major player in Southeast Asia’s automotive industry, is bracing for impact.

The country’s Finance Minister, Pichai Chunhavajira, acknowledged that the auto part exports will be affected by the tariffs.

While Pichai did not quantify the precise impact of Trump’s impending levies, the implications are significant.

Thailand is the largest car production hub in Southeast Asia, boasting an extensive network of factories that supply parts and raw materials to global players ranging from carmakers to tire manufacturers.

The benchmark SET Index in Thailand dropped 1% on Friday to a one-week low.

The index is about 16% lower year to date as Trump’s trade war injects more uncertainties into a market already battered by corporate scandals, weak economic growth, poor corporate earnings, and political instability.

Although Thailand’s auto shipments account for just 4.3% of its exports to the US, weak global demand could depress shipments of auto parts elsewhere.

The vulnerabilities in Thailand underscore the existence of investor landmines worldwide as investors move some investments away from the US’s volatile markets.

Nomura analysts wrote, “These effects may take some time to materialize but, in our view, pose a clear medium-term threat to one of Thailand’s leading industries.”

The 25% tariff on all imported finished vehicles is slated to take effect on April 3.

A 25% tariff on auto parts is slated to take effect no later than May 3.

Trump’s executive order did not name China, but it said the pandemic and its impact on global supply chains has undermined the US’s ability to maintain a resilient domestic industrial base.

It also said that foreign auto industries “propelled by unfair subsidies and aggressive industrial policies, have grown substantially”.

The tariff announcement sent domestic and foreign auto stocks tumbling.

In Asia, Japan’s and South Korea’s car makers are expected to be in the direct line of fire, with shares of auto giants Toyota and Hyundai posting sharp losses since the executive order was signed.

In Europe, shares of automakers also fell, with Germany’s Volkswagen and BMW down 4% since Trump signed the executive order.

The post Beyond car stocks: Donald Trump’s tariffs threaten global auto supply chains appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Elon Musk says his companies are ‘suffering’ due to White House involvement
next post
TSMC stock under pressure from tariff concerns, but analysts stay bullish

Related Posts

Is the Google stock at risk as Elon...

April 16, 2025

Long FLNC: Fluence Energy Maintains Uptrend After Bullish...

October 4, 2024

Trump wants Apple to shift iPhone production from...

May 16, 2025

Dow tumbles 475 points, S&P 500 suffers worst...

April 19, 2024

Could Dollar General stock price rebound after earnings?

December 1, 2024

Meta executives eligible for 200% salary bonus under...

February 21, 2025

VAT stock: This Swiss semiconductor company could turn...

September 10, 2024

Indian markets fall ahead of Fed meeting; Dixon...

December 16, 2024

Xiaomi stock price has more upside, but faces...

April 14, 2025

USDT issuer Tether eyes investment in Italian media...

March 27, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Interview: Strategic location gives Brazil Potash cost advantage in domestic fertiliser market, says CEO Matt Simpson

      June 1, 2025
    • Canada’s Q1 GDP expands by 2.2%, driven by exports spike ahead of potential US tariffs

      June 1, 2025
    • President Trump to host farewell for Elon Musk as DOGE leader steps away

      June 1, 2025
    • UK’s digital banks face divergent fortunes: Starling stumbles, Monzo and Revolut soars

      June 1, 2025
    • Trump wants Apple to shift iPhone production from India to the US: here’s what it means

      May 18, 2025

    Categories

    • Business (3,022)
    • Investing (2,459)
    • Latest News (1,994)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved