Trump's 25% tariff on cars: Share of Tata Motors fall, how other companies are affected?

US President Donald Trump on Wednesday announced a 25% tariff on cars imported from abroad. The US imported about 80 lakh cars last year. Trump's decision has led to a fall in the shares of Indian company Tata Motors by about 6%.

Stock of General Motors fell 

Apart from this, the stock of American automobile company General Motors fell by 3% on Wednesday. At the same time, the shares of Stellantis, the parent company of Jeep and Chrysler, also fell by about 3.6%.

Direct impact on Jaguar Land Rover

Trump's 25% tariff will have a direct impact on Jaguar Land Rover, owned by Tata Motors. The company sold 4 lakh cars worldwide in the financial year 2024. Of these, 22% i.e. about 88 thousand were sold in the US. The company manufactures its cars mainly in Britain. 

We will protect our workers and companies: Canada

Canadian Prime Minister Mark Carney has slammed Trump's decision to impose tariffs. He said that this is a direct attack on us, we will protect our workers and companies.

On the other hand Trump argues that this decision will lead to the opening of new factories in America. Various auto parts and finished vehicles made in Canada and Mexico will now be made in America. Trump has said that his decision is permanent.

Trump claims that this will boost the manufacturing sector in America. The White House hopes that this will increase revenue by $ 100 billion annually. It will be implemented from April 1.

Manufacturing cost may rise in America

According to reports, the average price of new cars in America is already around US $ 49,000 (about Rs 42 lakh). If new tariffs are implemented and their burden is put on the customers, then the price of imported cars may increase by $12,500 (Rs 10 lakh).

This tariff may increase the manufacturing cost in America and lead to a decline in sales. American car companies import many of their auto parts from other countries.

European Commission President Ursula von der Leyen also expressed concern over America's decision. She said tariffs are bad for businesses and even worse for consumers.

Prakash Kumar Pandey