Global Ripples: How U.S. Auto Tariffs are Shaking Markets

The newly imposed 25% U.S. tariff on auto imports is causing significant disruptions in global markets. Automakers in Japan, South Korea, and Europe are feeling the shockwaves, with stocks plunging and production strategies under review. As markets brace for reciprocal tariffs, gold prices surge amid economic uncertainty.

The 25% U.S. tariff on auto imports is causing a stir worldwide, as manufacturers from Tokyo to Wolfsburg react to potential price hikes and contemplate shifting their manufacturing bases.

Japanese and South Korean carmakers suffered a brutal market decline, with nearly $20 billion in market value erased this week. The European market is also bracing for impact, while Volkswagen warns of negative consequences for the industry.

As automakers strategize their next moves, Tesla remains relatively unaffected, relying less on foreign-made parts. Meanwhile, the gold market rallies, reaching record highs amid rising economic uncertainty.

(With inputs from agencies.)