The trade war initiated by Donald Trump plunges Stellantis, Mercedes, Volkswagen, and Porsche into uncertainty in the automotive sector

The scene is as surreal as an episode of "Monty Python": Donald Trump, a cup of coffee in hand, decides to unleash the floodgates of a trade war like a kid who knocks over all the toys. In his wake, prestigious brands like Stellantis, Mercedes, Volkswagen, and Porsche find themselves navigating turbulent waters, slipping on tariffs like fish out of water. The once-glitzy automotive industry now finds itself caught in an endless vice. Who would have thought that a simple tweet could trigger such a cataclysm?

Tariffs that shake up the automotive sector

Here comes the president deciding to play the conductor of this symphony of disaster, imposing tariffs of 25% on cars made abroad. A move as clever as a failed soufflé recipe: everyone expects a masterpiece and ends up with a puddle of desperately flat batter. Ford, GM, Toyota, and even Honda look around the table in confusion, wondering if one of them had the silly idea of inviting this character to the party.

Consequences for major brands

In this storm, Stellantis and Mercedes struggle to project themselves, and for good reason: financial forecasts for 2025 are suspended. Like a good old horror movie, the leading figures of the automotive industry step into the fog, waiting for the monster (or the increase in tariffs) that might appear at any moment. Volkswagen is considering relocating productions to avoid tariff wrath, while Porsche might be pondering whether to replace its models with others that adapt to the new realities. But who would have thought that a luxury car manufacturer would end up doing its accounts like a neighborhood baker?

A disastrous domino effect

The reactions are swift, and panic is setting in. Brands like BMW, Nissan, and others follow suit, trying to adapt to this chaotic dance. Each tries to juggle strategic decisions, a bit like a clown balancing plates on toothpicks. One mistake, and everything can collapse, dragging the auto industry into a vortex of financial uncertainties.

And all this while global demand for electric vehicles is nervously fluctuating, caught between a green utopia and cold economic realities. Who would have said that in 2025 we'd be discussing the threat of climate change through debates on taxes? As if the world was just being lighthearted about its troubles!

A bitter-tasting battle

The tensions between the United States and Europe, already as palpable as sweltering heat during a hot summer, only worsen the situation. It feels like an episode of "Game of Thrones": alliances and betrayals on every corner, the manufacturers must maneuver to survive. Manufacturers facing the challenges of tariffs imposed by Trump wonder who will ultimately throw down the gauntlet. Some say that this artistic blur could lead to a collapse of demand by as much as 29%. Trivia or real threat? In any case, a grand fight is looming where everyone is fighting to save their neck.

Source: investir.lesechos.fr

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