Moody’s Predicts $30B Loss in Car Industry Due to Tariffs

Global automakers face an expected annual loss of $30 billion due to U.S. tariffs implemented under the 2025 tariff regime, according to Moody’s. These tariffs primarily impact vehicle imports and raw materials like steel, leading to increased taxes and financial strain on major companies. Moody’s warns that heavy hitters like General Motors, Ford, Tesla, Stellantis, and Porsche are particularly vulnerable to these costs, which will translate into higher prices for consumers. 🚗 Although no official statements have been released, recent manufacturing decisions from these automakers suggest they’re adjusting their strategies in response to this economic challenge. J.P Morgan predicts a 3 percentage point drop in profit margins across the industry, highlighting increased financial pressures and potential price hikes on vehicles. For example, Porsche CEO Oliver Blume has confirmed absorbing $400 million in U.S. tariff costs by shifting some production towards internal combustion engine (ICE) and plug-in hybrid models. 💼 While these tariffs are unlikely to affect Bitcoin or Ethereum directly, they could influence related financial sectors, particularly those involved in supply chain finance tokens. This shift presents a broader economic impact on carmakers who heavily rely on international operations. The outcome of this change will be closely observed as global production adjustments reshape investment strategies and innovation plans for the future.