| Published 4h agoMarkets for the most part reacted positively to Donald Trump’s 2024 US election victory, with Wall Street’s main indexes jumping to record highs, but some auto industry stocks hit multi-year lows over fears of punitive tariffs and a turn-back on electric vehicle policies.
As BMW stock hit four-year lows, CEO Oliver Zipse sought to assure investors that punitive tariffs under Trump, which have been threatened for Europe, would not affect the company significantly as its Spartanburg plant in North Carolina currently produces over 400,000 vehicles per year in that country.
Trump has previously mooted a 10% tariff on imports from all foreign nations and a much higher 60% tariff for Chinese imports. While most global automakers have factories in the US, they still rely on imports to flesh out their model ranges to meet consumer demand.For instance, some exporters rely on the African Growth and Opportunity Act for duty-free access into the US market.
“This will depend on the extent to which the administration cuts investments in infrastructure and eliminates the leasing tax credit under section 45W of the Inflation Reduction Act .