Trump's New 25% Car Tariff Rocks Auto Industry

U.S. President Donald Trump announced a new 25% tariff on imported cars, impacting companies like General Motors and Ford whose shares dropped. While Tesla's stock rebounded, industry experts speculate that U.S. automakers might receive exemptions due to supply chain considerations and long-term implications are yet to be seen.

U.S. President Donald Trump made an impactful announcement late Wednesday, declaring a 25% tariff on all cars not produced within the United States. This policy shift aimed at boosting domestic automobile production is set to be permanent, affecting various stakeholders in the automotive industry.

The decision caused immediate tremors in the stock market as shares of major U.S. car manufacturers like General Motors and Ford slipped in extended trading hours. Tesla, initially affected, managed a rebound after Trump suggested the tariffs might not harm their operations.

Chuck Carlson, CEO of Horizon Investment Services, highlighted the uncertainty surrounding tariff policies, noting potential exemptions for U.S. automakers based on their supply chain structures. Industry analysts remain watchful as the long-term effects of these tariffs unfold.

(With inputs from agencies.)