President Trump is slowing down the profitability of global car manufacturers. He announced on Wednesday that the US will enforce a 25% tariff on imported cars and car parts starting from April 3, affecting both complete vehicles and trucks.

Trump expressed optimism about the tariffs, stating that they will boost economic growth. However, investors and experts, as observed in the stock markets and analyst opinions on Thursday, do not seem to share the same positive outlook.

The tariffs are expected to increase production costs for automakers and reduce consumer demand due to higher prices. Approximately half of the vehicles sold in the US are imported, leading to a decline in the stock prices of major US car manufacturers such as General Motors and Ford. Conversely, Tesla's shares rose, likely because most of its models are manufactured domestically.

Japanese automakers like Toyota and Honda saw their US-listed stocks slip, along with European companies like Ferrari. Shares of auto parts suppliers like Magna International and Dana also experienced a decrease.

According to RBC Capital Markets analyst Tom Narayan, US carmakers may raise vehicle prices, leading to decreased sales but a lesser negative impact on earnings. Interestingly, Tesla, led by Elon Musk, avoided a significant drop in its stock.

Auto analysts, including JP Morgan's Akira Kishimoto, predicted substantial negative effects on Japanese automakers, particularly Nissan Motor, Mazda Motor, Subaru, Mitsubishi Motors, Honda Motor, and Toyota Motor. They suggested the possibility of short-term market fluctuations due to the tariff announcement but anticipated that the market could adjust if the tariffs were negotiated lower.