By WSJ Staff
Automobile stocks fell early Friday after President Trump said he might raise tariffs on imported vehicles to encourage more investment in U.S. manufacturing.
Speaking at a White House event Thursday, Trump said his 25% levy on foreign cars had spurred investments by General Motors and others. "I might go up with that tariff in the not-too-distant future," he said. "The higher you go, the more likely it is they build a plant here."
Trump said a $20 billion investment by South Korea's Hyundai, which includes a plan for a $6 billion steel mill in Louisiana, wouldn't have happened without the new duties. "They wouldn't have invested 10 cents if we didn't have tariffs," he said.
Auto stocks, including Stellantis, BMW and Toyota fell in Europe and Asia on Friday.
The White House event at which Trump spoke was to mark his signing of a resolution blocking California's ban on the sale of new gasoline-fueled cars by 2035. Shares of EV maker Tesla fell in premarket trading Friday, having dropped 2.2% Thursday.
The president also touted his now-50% tariff on foreign steel and aluminum, as well as last month's deal between Tokyo's Nippon Steel and U.S. Steel. Trump said Americans would hold a "golden share" that assures U.S. control of the company.
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(END) Dow Jones Newswires
June 13, 2025 06:38 ET (10:38 GMT)
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