Trump's Tariff Turmoil Sends Auto Stocks Spinning

Auto stocks plummeted after President Trump announced 25% tariffs on auto imports, with Tata Motors hit the hardest. The tariffs, expected to extend to major auto parts, led to significant declines in shares of Tata Motors and others, showcasing a jittery market reaction.

Auto stocks suffered a significant setback as markets opened on Thursday, following an announcement by the US President Donald Trump to enforce a 25% tariff on imported cars starting April.

Tata Motors was particularly affected, with shares plunging over 6%, along with declines in other automotive companies like Ashok Leyland, Mahindra & Mahindra, and Bajaj Auto. The BSE auto index reflected an overall downward trend, dropping 0.86%.

This dramatic market response underscores investor concerns about the impact of heightened tariffs on the international operations of companies like Tata Motors, which substantially exports JLR models to the United States.

(With inputs from agencies.)