US tariffs on automotive from April 2, sector collapses (Stellantis -6.2% on Piazza Affari)

Last night's announcement by U.S. President Donald Trump, confirming the imposition of a 25% tariff on all imported cars, has deeply shaken the global automotive sector. This measure, set to take effect on April 2, aims to strengthen domestic production in the United States but has already caused significant repercussions in financial markets. Major European car manufacturers have experienced sharp declines on the stock exchange. For instance, Volkswagen and BMW shares dropped by 3.55% and 4.06%, respectively. Ferrari was also affected, with a 4.67% decline, while Stellantis saw a 6.20% drop in the Italian market. These losses reflect investors' concerns over the new tariffs' impact on exports to the U.S. market, one of the leading outlets for the European automotive industry. Trump's announcement has raised concerns not only among investors but also among industry analysts. The imposition of such tariffs could increase the prices of imported cars in the U.S., making them less competitive than domestically produced vehicles. This scenario could result in a drop in sales for European and Asian manufacturers, possibly affecting employment and production in their respective countries. In response to this move, the European Union is evaluating appropriate countermeasures. Some European leaders have already expressed the need for a strong, coordinated response to protect the continent's automotive industry. However, there is hope that negotiations can be initiated to avoid a trade war damaging both sides. Meanwhile, American consumers could face higher car prices, both imported and domestic, due to market dynamics influenced by the tariffs. This could significantly impact purchasing decisions and overall spending in the U.S. automotive sector.