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

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Latest News

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

by admin March 29, 2025
March 29, 2025

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
Myanmar earthquake death toll soars; Thai rescuers search for dozens trapped in Bangkok collapse
next post
Uber stock price is on the verge of a breakout amid tariff tailwinds

Related Posts

Scientists spot ‘glory effect’ on a world beyond...

April 21, 2024

South Korea to mass produce lasers that can...

July 12, 2024

Fed Chair Powell signals caution on rate cuts...

March 8, 2025

The UK government has published a new definition...

March 16, 2024

Trapped and left for dead, injured Ukrainian soldiers in...

February 20, 2024

This Chinese virologist shared crucial Covid-19 data. Then...

May 2, 2024

Russian-born couple charged with spying offense in Australia

July 13, 2024

Hamas political leader Ismail Haniyeh killed in Iran, group...

July 31, 2024

Japan’s top general lauds closer South Korea military...

July 18, 2024

Bank of Russia may hold key interest rate...

September 14, 2024

    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

    • GMS stock jumps 29% on takeover interest from Home Depot, QXO, analysts raise PTs

      June 22, 2025
    • Japan’s rice price surge: what’s driving it and why it could spark a political crisis

      June 22, 2025
    • BofA raises STOXX 600 target amid resilient global growth, warns on Mideast risks

      June 22, 2025
    • Palantir co-founder: US must prevent Iranian nukes

      June 22, 2025
    • Fed governor Waller advocates for July rate cut amid tariff, labor market outlook

      June 21, 2025

    Categories

    • Business (3,199)
    • Investing (2,531)
    • Latest News (2,000)
    • 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