|
US Tariffs Shake Global Auto Industry
2025-05-08 22:55:09
Automotive

US Tariffs Shake Global Auto Industry

Image used under license from Shutterstock.com

The imposition of hefty US tariffs on auto imports has prompted significant challenges for global automakers. Toyota, the world's largest car manufacturer, has cut its profit forecast for the fiscal year by nearly a third, attributing the reduction to the tariffs.

The company anticipates a $1.3 billion impact from the tariffs, which came into effect in April and May. This situation highlights the complexities faced by Japan in trade negotiations with the US, given the country's heavy reliance on auto exports.

Meanwhile, Ford has responded by raising vehicle prices, expecting a $1.5 billion hit. The tariffs underscore the evolving dynamics in the global auto industry, as companies like Ferrari and Lamborghini navigate the challenges with strategic price adjustments and cautious market outlooks.

Automakers are grappling with the need to shift production and adapt to a rapidly changing trade environment.

Related news on that topic:

Toyota's Profit Hit by US Tariffs

Toyota, the world's largest automaker, is facing a significant profit decline due to US tariffs on auto imports and parts. The company anticipates a 35% drop in profits for the fiscal year ending March 2026. Despite a projected 1% rise in sales, the tariffs, enacted in April and May, are expected to cost Toyota around €1.1 billion. The US is a crucial market for Toyota, with 28% of Japanese exports heading there, highlighting the importance of favorable trade conditions. In response, Toyota plans to adjust its US supply chain and focus on local production. The automaker is also investing in a new battery plant in North Carolina to bolster its US operations. Meanwhile, competition in China, particularly from local electric vehicle manufacturers, continues to challenge Toyota's market share.

Ford and the Automotive Industry Grapple with Tariff Challenges

Ford Motor Company is facing substantial financial strain due to tariffs imposed by the Trump administration, projecting a loss of $2.5 billion this year. In response, the company has increased prices on some models produced in Mexico, including the Mustang Mach-E and Maverick pickup. This reflects a broader trend in the automotive industry, where other manufacturers like General Motors are also feeling the impact of rising costs. While Ford maintains a strong presence in the U.S. market, the complications in sourcing rare earth materials threaten production stability. Simultaneously, BMW's CEO anticipates a potential easing of tariffs by July, emphasizing the detrimental effects of trade conflicts. On a more optimistic note, e-commerce platforms like eBay and Etsy report low exposure to Chinese suppliers, suggesting resilience amidst the turmoil. As the trade war continues to unfold, companies are urgently seeking strategies to adapt and thrive in a challenging economic landscape.

Read 1 more recent news on this topic

The press radar on this topic:

AFP
8. Mai 2025 um 07:54

US Tariffs: Toyota Lowers Profit Forecast by One Third

Toyota, the world's largest automaker, has lowered its profit forecast for the current fiscal year by about one third, as high US tariffs on auto imports are increasing its costs. The company expects a decline in profit of nearly 35 percent to 3.1 trillion yen. Toyota plans to adjust its shipments to the US in the short term and expand local production in the medium term to mitigate the impact of the tariffs. Additionally, Toyota is facing challenges in the Chinese market, where domestic compe..
New York Times - Business
8. Mai 2025 um 18:15

Toyota Says Tariffs Will Erase $1.3 Billion in Profits in Just 2 Months

Toyota, the world's largest automaker, reported a significant decline in its projected operating profit for the fiscal year ending in March. The company cited headwinds from a stronger yen and estimated a $1.3 billion hit from President Trump's tariffs in April and May alone. The murkiness of Toyota's forecast underscores the impact of the Trump administration's tariff agenda on the auto industry, leaving many global companies unable to estimate future prospects. The pain that Toyota is experi..
The Street
9. Mai 2025 um 10:19

Ford announces desperate move to battle tariffs TheStreet Daily Newsletter

Ford is raising prices on several of its vehicles, including the Mustang Mach-E, Maverick, and Bronco Sport, by up to $2,000 due to tariffs. The company expects a $1.5 billion net hit to its EBITDA this year from the tariffs and has suspended its guidance for the year. Ford supports the administration's goal to strengthen the U.S. economy but says it will take time for automakers to shift production to the U.S., and balancing this, including potential price increases, will cost the company a s..
Yahoo Finance
8. Mai 2025 um 11:46

(RACE)

Ferrari, a luxury automaker, may be insulated from tariff-fueled price hikes due to its ultra-high-net-worth clientele. The company plans to raise prices by up to 10% on its most expensive models, while keeping prices steady on its lower-priced cars. Ferrari's CEO says customers appreciate the company's transparent and collaborative approach to pricing. Lamborghini also reported strong first-quarter results, though it remains cautious about the uncertain trade environment. Wall Street analysts..
CW

Account

Waiting list for the personalized area


Welcome!

InfoBud.news

infobud.news is an AI-driven news aggregator that simplifies global news, offering customizable feeds in all languages for tailored insights into tech, finance, politics, and more. It provides precise, relevant news updates, overcoming conventional search tool limitations. Due to the diversity of news sources, it provides precise and relevant news updates, focusing entirely on the facts without influencing opinion. Read moreExpand

Spotlighting today's most mentioned stocks in the media. Uncover the stories making waves in the stock market:

A closer look at the individuals who are leading today's news narratives. Find out what makes them the center of attention.

Exploring the five locations receiving the most media attention in the last 24 hours. Discover what puts these places in the global spotlight

Your World, Tailored News: Navigate The News Jungle With AI-Powered Precision!

News

All News
Politics
Technology
Economy
Business
Climate

About

About Us
Team + Mission

Legal

Cookie Settings
Disclaimer
Legal Notice
Data Privacy

Contact

Contact