Latest / Markets with Megan: A Quick Financial Markets Update / Impact Report: Car Wars - Auto Tariff Shakeup | S2 E024 | 03-27-25

Transcript

Impact Report: Car Wars - Auto Tariff Shakeup | S2 E024 | 03-27-25 · Markets with Megan: A Quick Financial Markets Update

• 0:00
  Megan Horneman: The White House is at it again.
• 0:02
  Megan Horneman: It is Thursday, march 27th, and this is Markets with Megan.
• 0:05
  Megan Horneman: If you like this podcast, please subscribe, hit that alarm bell, share it with friends, family or colleagues as well.
• 0:10
  Megan Horneman: Now, today, we're going to talk about the news we got out of the White House yesterday about them implementing a new 25% tariff on all auto imports into the US.
• 0:22
  Megan Horneman: What does this mean?
• 0:23
  Megan Horneman: Well, first of all, the US imported about $474 billion worth of auto products last year.
• 0:30
  Megan Horneman: $220 billion of that was in actual passenger cars.
• 0:34
  Megan Horneman: This is disrupting from the international.
• 0:39
  Megan Horneman: We've seen some of the like a BMW, a Stellantis.
• 0:42
  Megan Horneman: These cars, or these car makers, are down today because of this news.
• 0:46
  Megan Horneman: When you look from the US side, though, we're seeing some of the US automakers doing better Tesla, ford.
• 0:53
  Megan Horneman: These are the ones that do end up producing their products here in the US.
• 0:58
  Megan Horneman: Where this goes.
• 0:59
  Megan Horneman: Another very gray area is what does this mean for auto parts?
• 1:03
  Megan Horneman: This is included in what they will tariff, but the problem with the auto industry is parts come from all over the world, so if a car is manufactured here in the US, it doesn't necessarily mean that every part is made in the US.
• 1:18
  Megan Horneman: So the actual effect that this is going to have on the auto industry isn't clear quite yet.
• 1:23
  Megan Horneman: Also, will there be some pullbacks with Mexico and Canada, given the trade agreements that we have in place?
• 1:32
  Megan Horneman: We just don't know at this point.
• 1:34
  Megan Horneman: This is a lead up into next week, which is a big day, april 2nd.
• 1:37
  Megan Horneman: We've had some of the other countries say that they're thinking about retaliatory measures to this, so it's really an unknown right now.
• 1:46
  Megan Horneman: Now, one thing that we can say is this morning we also got a GDP report, and that GDP report was relatively good.
• 1:54
  Megan Horneman: What we saw in that was corporate profits actually rose the highest level since 2022.
• 1:59
  Megan Horneman: So is there room for some of these companies in the US to be able to absorb some of these higher prices?
• 2:06
  Megan Horneman: That remains to be seen.
• 2:07
  Megan Horneman: We'll get some more information out of earnings season, which kicks off the week of April 7th, to see how these companies are adjusting.
• 2:13
  Megan Horneman: They'll be able to make comments after that, april 2nd day, where we'll get more details on what these tariffs reciprocal tariffs may be.
• 2:21
  Megan Horneman: That's all we have.
• 2:22
  Megan Horneman: If you have any questions or feedback, please let us know.
• 2:25
  Megan Horneman: Also, if you want a history of our podcast, you can go to marketswithmegan.
• 2:28
  Megan Horneman: fm.
• 2:29
  Megan Horneman: Thank you, you.