Most Carmakers Stand to Lose as Tariffs Spread Pain

As the fallout from US President Donald Trump's tariff plans comes into relief, a harsh truth is emerging for the automotive industry: There are lots of losers and not many winners.

- BLOOMBERG

From South Korea's Hyundai Motor to Germany's Volkswagen AG and America's own General Motors Co, many of the world's most prominent carmakers will soon face sharply higher costs from Trump's new levies on auto imports and key components.

"There are very few winners," Sam Fiorani, vice president of global vehicle forecasting for AutoForecast Solutions, said in a phone interview. "Consumers will be losers because they will have reduced choice and higher prices."

One notable winner in the tariff chaos: Elon Musk. His Tesla Inc has large factories in California and Texas that churn out all the electric vehicles it sells in the US. Ford Motor Co, too, could face a less-severe impact than some rivals, with about 80 percent of the cars it sells in the US being built domestically.

Starting next week, the new 25 percent tariffs will apply to all imported passenger vehicles and light trucks, as well as key parts like engines, transmissions and electrical components, on top of any duties already in effect.