Automa companies cannot know what is happening against hell with a Trump tariff

Start Last week with TeslaFollow it quickly General Motorsand Mercedes -BenzAnd Volvo. Auto industry companies around the spectrum withdraw their guidelines for this year because they cannot know how to carefully plan for the future thanks to President Donald Trump Constantly changing definitions.

The auto industry is paralyzed due to uncertainty. Stelantis, the parent company of Jeep, Dodge and RAM recently dedicated profit directions for this year, as financial manager Doug Ostroman told analysts, “Most of us are in a period of waiting for more clarity”, According to Reuters.

The lack of clarity was more clear this week, like Trump The new executive order signed Walk again some definitions that just imposed. Now, car companies that pay a tariff of 25 percent on car imports will not have to pay other fees, such as steel and aluminum, or some imports from Canada and Mexico. However, the rules do not seem to protect car manufacturers from tariffs on steel and aluminum that their suppliers pay and move to.

Car companies hate these things. These are the global companies that have billions of dollars that want to plan for years-if not contracts-in the future, and weigh investments in new factories and models based on sales predictions and expectations. The basis of all this is the certainty of the market.

But Trump’s tariff Nothing was certain. Most analysts expect more chaos. The recent amendments to the president require car manufacturers who assemble their cars in the United States to apply for a partial payment of a 25 percent tariff imposed on auto parts for two years. Basically, Trump is dropping complete chaos in these car companies, which will now have to move in the complexity of the compliance and payment of customs tariffs, while trying to transfer the largest number of supply chains to the United States.

For a better snapshot of how strange, see just to General Motors. The country’s largest auto company was expecting a strong year of profits until Trump dawn everything with his tariff. This week, General Motors withdrew its instructions, explaining that any profit prediction at this stage will be “guessing”, and it will be “guessing”. according to New York Times. The company also postponed its collective calls with financial analysts to discuss its results in the first quarter by two days, while it evaluates the effect of the last curved ball from the White House.

Ultimately, most analysts are committed to their predictions at higher prices for new cars that will definitely transport to consumers. Dan Evez of Wedbush said The Trump tablet on a car tariff “looks good on paper”, but it still will still prevent disasters from landing in the industry. He said that car companies in all fields face a “brutal situation”.

“The US car, which includes all American parts made in the United States, is a fictional story that is not possible today, and many factories/production centers may take 4 to 5 years to build in the United States … and this talks about the massive frustration of the industry because the rules of the American tariff game cannot be defended from our point of view.”

Auto industry companies were desperately pressuring relief management from definitions, on the pretext that two years were not enough time to completely reorganize complex manufacturing operations. Given the mercury nature of the Trump approach to the definitions, it is not clear whether any of these huge investments is worth it. They can wake up tomorrow under a completely different decree.

Even the CEO of Tesla (and “First Buddy”) said Elon Musk that he is doing his best to push the president to reduce the customs tariff for imported auto parts. “I think low definitions are generally a good idea of ​​prosperity,” Musk said during the Tesla profit call last week. “But this decision is due to the elected representative of the elected people, as he is president of the United States. Therefore, as you know, I will continue to defend the low customs tariffs instead of the higher definitions, but this is all I can do.”

The situation is quickly approaching the crisis, as all major car stock prices are traded every day in a row. Customers feel panic, traders are scrambled, and new models are suspended. It is like falling into the antisepticAnd there is no immediate sign that anyone comes out.