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Catch up on the top industries and stocks that were impacted, or were predicted to be impacted, by the comments, actions and policies of President Donald Trump with this daily recap compiled by The Fly:
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AUTO TARIFFS: President Trump told CEOs of some of the country’s top automakers during a call earlier this month that the White House would look unfavorably on car prices being raised as a result of tariffs, leaving some of them rattled and worried they would face punishment if they increased prices, Josh Dawsey and Ryan Felton of Wall Street Journal report, citing people with knowledge of the call. Trump told the CEOs they should be grateful for his elimination of what he called former President Joe Biden’s electric-vehicle mandate, according to the Journal. He made a pitch for how they would actually benefit from tariffs, two people on the call told the paper. Publicly traded companies in the space include Ford (F), General Motors (GM), Honda (HMC), Mercedes-Benz (MBGYY), Nissan (NSANY), Stellantis (STLA), Tesla (TSLA), Toyota (TM) and Volkswagen (VWAGY).
PURE CHAOS: After speaking to auto industry experts from the U.S., Europe, and Asia, Wedbush concluded President Trump’s 25% tariff on all cars and parts made outside the U.S. “would send the auto industry into pure chaos.” The move will raise the average price of cars between $5,000 on the low end and $10,000-$15,000 on the high end, the firm tells investors in a research note. Wedbush believes every auto maker in the world will have to raise prices selling into the U.S. while the supply chain logistics of the tariff announcement is “hard to even put our arms around at this moment.” A U.S. car with all U.S. parts made in the U.S. “is a fictional tale not even possible today,” according to the firm.
Wedbush thinks it would take three years to move 10% of the auto supply chain to the U.S. and cost hundreds of billions “with much complexity and disruption.” It adds, “The concept of this auto tariff in our view would be a back breaker and Armageddon for the auto industry globally and throws the supply chain into pure panic mode.” Wedbush believes the winner from these tariffs “is no one.” Even Tesla will be hit and will be forced to raise prices, the firm predicts. The news will continue to put “major pressure” on General Motors and other auto makers and suppliers until more clarity is learned from the White House, Wedbush says.