Markets have reacted to news of tariffs with about as much optimism as one would expect.
Europe
Declines in car stocks pushed
European shares to a two-week low, with the pan-European STOXX 600 down 1% to hit its
lowest point since March 14.
The STOXX 600 autos sector slumped more than 3.3%, on track to erase all of its gains seen this year.
Shares of Volkswagen, vulnerable due to its large supply base in
Mexico and lack of US production for its Audi and Porsche
brands, dropped 3.6%.
Chrysler parent Stellantis slumped 6.4%, BMW
fell 3.9%, Porsche slid 4.2%, while Volvo
Cars and car parts maker Continental shed
about 2.5% each.
Asia
In Asia, Toyota Motor and Mazda Motor led declines in stocks in Japan, which relies on autos for more than a quarter of its exports to the US.
Toyota Motor stock dove 2%, Honda stock dipped 2.5%, Nissan was down 1.7% and Mazda shares plummeted 6%.
Shares in Subaru slipped 5% and Mitsubishi lost 3.2%.
Shares of automakers in South Korea, Hyundai Motor and Kia Corp, fell sharply, down 4.3% and 3.5% respectively, while India automakers and parts suppliers also slid.
US
Shares of US automakers, which are highly integrated with plants and suppliers in Canada and Mexico, fell in after-hours trading, while US equity index futures slid, indicating stocks are headed for a lower open today.
Yesterday afternoon, shares in General Motors fell by about 3%, Ford’s stock was up slightly, but shares in Stellantis, the owner of Jeep and Chrysler, dropped nearly 4%.
Tesla dropped 5.6% to extend its loss for 2025 to 32.6%.
