The automakers are confused about what is going on with Trump’s tariffs

“Trump promised a golden age’, but he unveiled tariffs,” Tom Barr, a third-generation mold maker in Michigan

“Somebody reached out to us from Ford Motor Company,” Barr said. “They’re investigating it. They’re not saying they’re going to do anything, but they want to know what their options are. Without these tariffs phone calls wouldn’t have taken place.

Tom Barr, a third-generation mold maker in Michigan, makes plastic injection molding equipment for the auto industry, among others. He has lost business to competitors in China as well as potential customers who have called him inquiring about bringing their orders home now that the tariffs have been put in place.

Source: Trump promised a ‘golden age’ for the economy. Then he unveiled tariffs

Implications of the Trump Import Tax Cuts on the United States Economy and the Decline of the Gross Domestic Product During the First Month of Trump’s Presidency

“At the end of the day, it’s just a tax on the end consumers,” Carpenter said. We’re definitely losing business. But we’re not losing it to a competitor. We’re just losing the opportunity for a sale.”

Most of the lighting fixtures in the Boston store are imported from China. He said the tariffs have been worse for his business than the 2008 housing crisis.

Almost everything the United States imports has a 10% tax on it, along with a 145% tax on goods imported from China. The president wants to suspend tariffs but it’s left many businesses and consumers unsure what the future will look like.

The stock market’s fall has taken a toll on confidence. The S&P 500 index has lost 7.3% since Inauguration day, while the tech-driven Nasdaq has lost 11. It’s the market’s worst performance at the start of a new presidency since the 1970s.

While the job market has so far held up well, with an unemployment rate of just 4.2% in March, the Conference Board’s survey found expectations about the job market are the worst since 2009, when the economy was hemorrhaging hundreds of thousands of jobs every month.

The recession is related to a loss of faith. “Consumers lose faith that they’re going to be able to hold onto their job, and they cut back on spending and we go into recession.”

An index of consumer confidence, compiled by the nonprofit Conference Board, has fallen for five straight months, and tariffs have now eclipsed inflation as a top concern. Many of those surveyed say they’re worried that Trump’s import taxes will raise prices and possibly drag the economy into a recession. The forward-looking elements of the confidence index are already well below the level that typically signals a looming recession.

Economic growth appears to be slowing. The stock market has dropped sharply. Consumer confidence has plummeted to its lowest level since the start of the COVID-19 pandemic.

Figures to be released by the Commerce Department on Wednesday are expected to show that the United States’ gross domestic product grew much more slowly in the first quarter of the year, compared with the final months of 2024.

The report covers the final weeks of the Biden administration and the early months of Trump’s term, as well as the first rumblings of a trade war.

Growth was dragged down in part by a surge of imports, as businesses and consumers raced to stock up before Trump’s sweeping tariffs took effect in early April. Imports are a net negative for GDP.

“Consumers continued driving the train but with much less gusto than they have been up until now,” said Mark Zandi, chief economist at Moody’s Analytics.

Automakers can’t figure out what the hell is going on with Trump’s tariffs: The case of Stellantis, the largest automaker in the US

An editor with over 10 years of experience who covers EV, public transportation, and aviation. His work has appeared in The New York Daily News and City & State.

For a better snapshot of how bizarre this is, just look at GM. The largest automobile manufacturer in the US was expecting a great year of profits until Trump blew everything up with his tariffs. This week, GM pulled its guidance, explaining that any prediction of profits at this point would be “a guess,” according to The New York Times. The company was going to hold a conference call with analysts to discuss first-quarter results, but it was canceled due to the White House situation.

There is no clarity in the auto industry. Stellantis, the parent company of Jeep, Dodge, and Ram, also recently scrapped its outlook for the year, with Chief Financial Officer Doug Ostermann telling analysts, “Most of us are in a period of waiting for a bit more clarity,” according to Reuters.

Source: Automakers can’t figure out what the hell is going on with Trump’s tariffs

Tesla CEO Elon Musk: “We need a new engine to make the US work harder, better” or “differentially less”

Even the founder of the company, as well as the First Buddy. Elon Musk said he was doing his best to nudge the president into lowering tariffs on imported car parts. “I believe lower tariffs are generally a good idea for prosperity,” Musk said during Tesla’s earnings call last week. It is up to the president of the United States to make the decision. So, you know, I’ll continue to advocate for lower tariffs rather than higher tariffs, but that’s all I can do.”

Car companies don’t like this stuff. These are global, billion-dollar companies that plan years in the future, weighing investments in factories and models based on predictions and forecasts. Market certainty is the foundation of all this.

A US car made with all US parts is not possible today and many factories/ production hubs could take 4–5 years to build in the US, if the rules of the US trade game are anything to go by.

The situation is fast approaching a crisis, with all major auto stock prices trading lower each successive day. New models are being put on hold as customers panicked and dealers were scrambling. It feels like being in purgatory and there is nothing to indicate that anyone is leaving.