Not tariffic for US auto makers
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What new 25% tariff on cars and parts means for U.S. auto manufacturers?
So yes, cars, tariffs are coming next week from everywhere that exports cars to America. And you can imagine there'd be quite a reaction, although not as much as you perhaps would have thought, but US car manufacturers amongst those taking the biggest hit on the share market. And banks delaying. How far will inflation bounce back in the United States? The Norge Bank didn't cut, and maybe the ECB won't in a hurry either. And trouble for the UK Chancellor. Uh it seems there's a lot of doubt about whether the numbers will stack up in the budget she gave yesterday and maybe she's gonna have to raise taxes. We've seen a response to that on the bond markets. It's Friday the twenty-eighth of March 2025. It's the morning call from NAB.
Good morning. So we have a quarter percent fall in the US dollar today. It's below one hundred and four point three on the DXY. The Aussie is marginally up to just over sixty three US cents. The euro is up naught point four percent. The pound is up half a percent. But the yen, as you might imagine, is down naught point four percent today. In stocks, well, it's the US car manufacturers that haven't had a great day. General Motors down seven point three percent, Ford down three point nine percent, although Tesla managed a naught point Four percent rise today.
How did U.S. auto stocks react compared to broader market indices?
Actually, it was two percent up at one stage. Perhaps they are less dependent on car parts from overseas. That might be something to do with it. Stocks are generally lower in the US though, losing quite a bit in the last hour, actually, with the Dow finishing down naught point four percent, naught point three percent off the S P, half percent off the Nasdaq, and naught point four percent off the Russell two thousand. And sharp falls in Europe as well. The Eurostocks fifty down naught point six percent, the DAX down. Point seven percent, a half percent fall in the CatCaron, and a quarter percent fall in the FTSE one hundred. Less action going on in the bond markets, except in the UK, where ten-year guilt yields are up six basis points, but up two for ten-year treasuries in the US, down four in Canada for ten years, down two in Germany, France, and much of Europe, and Aussie ten years yesterday.
We're up three basis points to four and a half percent, up another few basis points on that on futures this morning. Morning. And oil is marginally higher today, up a quarter percent for WTI and Brent. Brent is now around seventy four a barrel, and we've seen big moves up in gold. It rose one point three percent on the ComX index. Silver is up two point six percent, but a two point four percent drop in copper. It's coming back down again today. So cars. Uh here's Nabs, Taylor Newton in Melbourne. It's curious, the US automakers have taken the hit. As far as share prices are concerned, when obviously the tariffs are being introduced to protect that industry. Uh whereas European automotive shares they they are also down today, but not as much as we're seeing in the United States.
Yeah, good good morning, Phil. Those um those kind
Kind of car tariff news has has kind of continued. You talked about it yesterday with with Ray. We got confirmation of that coming through yesterday morning, Australian time, and that does seem to have contributed to a little bit of a a um you know risk off mood with led by led by automakers.
What impact are the new tariffs having on European and Canadian automotive shares?
You've got um Eurostocks fifty down around point six percent. Um you've got automakers leading declines in in the US, as you say, but still the S P five hundred tracking only about point one percent lower. So reasonably muted moves across markets despite this news. Um I think when you look at, you know, where some of these implications are, kind of countries that uh hit the the hardest from this are where you would expect Canada, Mexico, um, Japan, South Korea to to some extent and and Europe as as well. Um and, you know, I think a a big part a big part of the challenge for for the US US is that, you know, it's not just uh tariffs on on finished cars, um auto parts are are also caught up in this as well, which is adding some uncertainty for those supply chains that kind of wave through through North America for a lot of a lot of auto manufacturers.
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Chapters
6 chapters
1
What new 25% tariff on cars and parts means for U.S. auto manufacturers?
0:01–1:10
2
How did U.S. auto stocks react compared to broader market indices?
1:10–2:54
3
What impact are the new tariffs having on European and Canadian automotive shares?
2:54–5:50
4
Why are U.S. Treasury yields and bond markets moving differently today?
5:50–9:01
5
What are the details of the USMCA‑compliant auto‑parts exemption?
9:01–12:46
6
How might the tariff rollout trigger a broader trade‑war escalation?
12:46–13:49