Trump’s 25% tariff on imported automobiles and components, effective April 2025, aims to boost U.S. auto production but disrupts global supply chains. Key exporters like Mexico, Japan, and Germany face economic strain, while automakers reassess operations. The U.S. market sees rising vehicle prices, falling consumer confidence, and investor caution, with potential Fed rate cuts anticipated. International backlash includes calls for negotiations and possible retaliation. While the policy may spur domestic investment, it risks slowing U.S. GDP growth and global trade realignments. The automotive industry now confronts a period of uncertainty, requiring strategic adaptation to evolving economic and political pressures....

The Fed held rates steady at 4.25–4.50% for the second time in 2024, maintaining its forecast for two rate cuts despite internal policy divergences and economic uncertainty. The decision sparked a brief equity rally, though Trump’s tariff threats and the triple witching event dampened momentum. Trump’s 25% steel and aluminum tariffs aim to revive domestic industries, though short-term support remains weak. The EU plans to curb steel imports, and major U.S. steelmakers missed earnings expectations. China may limit exports in response to U.S. tariffs. Meanwhile, Japan’s BoJ held rates but rising inflation and wages fuel expectations of further tightening.