President Trump’s latest announcement on tariffs is a reminder that macro uncertainty is high and will probably remain so for the near term. “What we’re going to be doing is a 25% tariff on all cars not made in the US,” he said on Wednesday. It wasn’t exactly a surprise, given the President’s preference for tariffs, but it’s another wake-up call that the White House intends to pursue its policies, which suggests a rough ride for making assumptions based on the standard playbook for the economy and financial markets.
Daily Archives: March 27, 2025
Macro Briefing: 27 March 2025
Trump announces 25% tariffs on imported autos, which are expected to raise prices on cars in the US. “We’re looking at much higher vehicle prices,” said economist Mary Lovely, senior fellow at the Peterson Institute for International Economics. Roughly 45% of US-sold vehicles are imported, with the largest percentage coming from Mexico and Canada. The automakers that are most vulnerable are Volvo, Mazada and Volkswagon, which have the lowest share of their US-sold vehicles manufactured in this country, according to Wards Automotive and Barclays research.
