From Toyota to Stellantis: Automotive Industry Accelerates on the Stock Market (Because of Tariffs)

The automotive industry saw strong stock market gains on Wednesday, both in Europe and, especially, in Asia. The issue at stake is lower-than-expected tariffs on Japan and Indonesia, two crucial markets for the sector globally.

In the Asia-Pacific region, Mazda, Subaru, Toyota, and Mitsubishi saw increases of between 13% and 18%. On the European continent, Stellantis gained 9%, while Volkswagen and Mercedes-Benz saw increases of close to 6%. The origins are the trade tariffs imposed by the US administration, led by Donald Trump.

These latter measures don't directly affect the automotive market, but rather concern Japan, Indonesia, and the Philippines, impacting a significant number of companies operating in the sector. Therefore, the decision generated considerable enthusiasm, including among companies listed on European stock exchanges.

Japan will be targeted with the imposition of 15% tariffs (down from the threatened 25%), which was so positive in the eyes of investors that the world's largest automaker, headquartered in that very country, rose 14%. This is Toyota, whose shares reached 2,854 yen (16.57 euros at the current exchange rate), meaning they reached a high in May.

Furthermore, among Asian automotive manufacturers, highlights include increases of 17.7% for Mazda, 16.6% for Subaru, and 13% for Mitsubishi, while Nissan gained 8.3%. It's worth noting that all of them are listed on the Tokyo Stock Exchange in Japan.

The sector's spirits also benefited from the tariff set at 29% for Indonesia (also lower than expected), which is the 5th largest automobile producer in Asia.

The positive sentiment felt in Asian markets spread to Europe, as several major listed companies stood out. Stellantis gained over 9%, while Volkswagen surpassed 6%, and Mercedes-Benz approached 6%. Porsche gained nearly 5%, while BMW rose over 4%, to name a few examples.

Regardless of the uncertainty facing the industry worldwide (which China manages to escape), it's clear that tariffs threaten to have a significant impact on the sector. The US invested $217 billion in auto imports last year. Mexico led the way, followed by South Korea, Japan, and Canada.

That said, it is natural for markets to discount the impact of potential tariffs based on existing expectations, and it is also expected that they will benefit from tariffs being set lower than expected, as was the case.