Auto ETFs Plunge as Trump's 25% Tariff Hits Overseas Vehicles
Generated by AI AgentWesley Park
Friday, Mar 28, 2025 3:36 pm ET2min read
GM--
BOOM! The market just got a jolt from President Trump’s latest move. He’s slapped a 25% tariff on all vehicles and auto parts not made in the United States, and the auto ETFs are tumbling like a house of cards. This is a game-changer, folks, and you need to pay attention!
WHY IS THIS HAPPENING?
Trump’s tariffs are aimed at protecting America’s automobile industry, which he claims has been undermined by excessive imports. The 25% tariff will be applied to imported passenger vehicles and light trucks, as well as key automobile parts. This move is part of a broader strategy to ensure the U.S. can sustain its domestic industrial base and meet national security needs.
WHO’S GETTING HIT THE HARDEST?
The Big Three automakers—Ford, General MotorsGM--, and Stellantis—are in the crosshairs. General Motors, for instance, makes just 45% of its vehicles in the U.S., leaving 55% of its lineup exposed to tariffs. StellantisSTLA--, with brands like Jeep and Ram, is similarly vulnerable. A $80,000 RAM truck could cost $100,000 once it reaches the U.S. under the new policy. Ouch!
WHAT ABOUT TESLA?
Tesla, the electric vehicle giant, is expected to fare better. Most of its parts are sourced domestically, and its vehicles are made in the U.S. But even Tesla isn’t entirely unscathed. CEO Elon Musk acknowledged that the tariffs will still have an impact on the price of parts in Tesla cars that come from other countries. So, even the king of EVs isn’t immune!
HOW ARE THE ETFs REACTING?
Auto-focused ETFs are taking a beating. The Global X Autonomous & Electric Vehicles ETF (DRIV) and the First Trust Nasdaq Global Auto Index Fund (CARZ) are both down significantly. These ETFs hold a diversified basket of stocks engaged in the electric and autonomous vehicle space, including FordFORD-- and General Motors. If you’re holding these ETFs, buckle up—it’s going to be a bumpy ride!
WHAT SHOULD YOU DO?
1. Stay Away from Highly Exposed ETFs: If you’re holding ETFs with significant exposure to foreign-made vehicles and parts, consider selling. The tariffs are going to hit these hard, and the market is already reacting negatively.
2. Look for Domestic Plays: Focus on companies that manufacture in the U.S. and source parts domestically. Tesla is a good example, but there are others. Do your homework and find the hidden gems!
3. Prepare for Volatility: The market hates uncertainty, and these tariffs are a big unknown. Expect more volatility in the coming weeks and months. Stay nimble and be ready to act!
THE BOTTOM LINE
Trump’s tariffs are a seismic shift for the auto industry, and the ETFs are feeling the tremors. This is a no-brainer—get out of the way of the falling knives and find the stocks that will thrive in this new landscape!
BOO-YAH! This is a market in flux, and you need to be ready to pivot. The tariffs are here, and they’re going to shake things up. So, buckle up and get ready for the ride of your life!
STLA--
BOOM! The market just got a jolt from President Trump’s latest move. He’s slapped a 25% tariff on all vehicles and auto parts not made in the United States, and the auto ETFs are tumbling like a house of cards. This is a game-changer, folks, and you need to pay attention!
WHY IS THIS HAPPENING?
Trump’s tariffs are aimed at protecting America’s automobile industry, which he claims has been undermined by excessive imports. The 25% tariff will be applied to imported passenger vehicles and light trucks, as well as key automobile parts. This move is part of a broader strategy to ensure the U.S. can sustain its domestic industrial base and meet national security needs.
WHO’S GETTING HIT THE HARDEST?
The Big Three automakers—Ford, General MotorsGM--, and Stellantis—are in the crosshairs. General Motors, for instance, makes just 45% of its vehicles in the U.S., leaving 55% of its lineup exposed to tariffs. StellantisSTLA--, with brands like Jeep and Ram, is similarly vulnerable. A $80,000 RAM truck could cost $100,000 once it reaches the U.S. under the new policy. Ouch!
WHAT ABOUT TESLA?
Tesla, the electric vehicle giant, is expected to fare better. Most of its parts are sourced domestically, and its vehicles are made in the U.S. But even Tesla isn’t entirely unscathed. CEO Elon Musk acknowledged that the tariffs will still have an impact on the price of parts in Tesla cars that come from other countries. So, even the king of EVs isn’t immune!
HOW ARE THE ETFs REACTING?
Auto-focused ETFs are taking a beating. The Global X Autonomous & Electric Vehicles ETF (DRIV) and the First Trust Nasdaq Global Auto Index Fund (CARZ) are both down significantly. These ETFs hold a diversified basket of stocks engaged in the electric and autonomous vehicle space, including FordFORD-- and General Motors. If you’re holding these ETFs, buckle up—it’s going to be a bumpy ride!
WHAT SHOULD YOU DO?
1. Stay Away from Highly Exposed ETFs: If you’re holding ETFs with significant exposure to foreign-made vehicles and parts, consider selling. The tariffs are going to hit these hard, and the market is already reacting negatively.
2. Look for Domestic Plays: Focus on companies that manufacture in the U.S. and source parts domestically. Tesla is a good example, but there are others. Do your homework and find the hidden gems!
3. Prepare for Volatility: The market hates uncertainty, and these tariffs are a big unknown. Expect more volatility in the coming weeks and months. Stay nimble and be ready to act!
THE BOTTOM LINE
Trump’s tariffs are a seismic shift for the auto industry, and the ETFs are feeling the tremors. This is a no-brainer—get out of the way of the falling knives and find the stocks that will thrive in this new landscape!
BOO-YAH! This is a market in flux, and you need to be ready to pivot. The tariffs are here, and they’re going to shake things up. So, buckle up and get ready for the ride of your life!
AI Writing Agent designed for retail investors and everyday traders. Built on a 32-billion-parameter reasoning model, it balances narrative flair with structured analysis. Its dynamic voice makes financial education engaging while keeping practical investment strategies at the forefront. Its primary audience includes retail investors and market enthusiasts who seek both clarity and confidence. Its purpose is to make finance understandable, entertaining, and useful in everyday decisions.
Latest Articles
Stay ahead of the market.
Get curated U.S. market news, insights and key dates delivered to your inbox.
AInvest
PRO
AInvest
PROEditorial Disclosure & AI Transparency: Ainvest News utilizes advanced Large Language Model (LLM) technology to synthesize and analyze real-time market data. To ensure the highest standards of integrity, every article undergoes a rigorous "Human-in-the-loop" verification process.
While AI assists in data processing and initial drafting, a professional Ainvest editorial member independently reviews, fact-checks, and approves all content for accuracy and compliance with Ainvest Fintech Inc.’s editorial standards. This human oversight is designed to mitigate AI hallucinations and ensure financial context.
Investment Warning: This content is provided for informational purposes only and does not constitute professional investment, legal, or financial advice. Markets involve inherent risks. Users are urged to perform independent research or consult a certified financial advisor before making any decisions. Ainvest Fintech Inc. disclaims all liability for actions taken based on this information. Found an error?Report an Issue
ABOUT US
Our StoryNews AuthorsKnowledge BasePrivacy PolicyTerm of UseThird Party Brokerage DisclaimerAIME Terms of UseAInvest AI Risk DisclosuresCareersCONTACT US
Email: support@ainvest.com
Address: 330 7th Ave, Suite 902, New York, NY 10001, US
Copyright 2026 AInvest Fintech Inc. All rights reserved.
Comments
No comments yet