TLDR
- •Moody's estimates $30 billion loss for automakers by 2025.
- •GM plans $4 billion investment to mitigate tariff impacts.
- •Tesla reports $300 million increase in costs from tariffs.
Moody’s Ratings has issued a warning that global carmakers could face significant financial losses due to new tariffs proposed by President Donald Trump. The credit ratings agency estimates a potential loss of $30 billion in operating profits for these automakers by 2025. The affected companies include major players such as Toyota, Volkswagen, GM, Ford, Honda, Hyundai, Kia, Volvo, Mercedes‑Benz, Stellantis, and Tesla.
These new tariffs are part of an effort by the Trump administration to increase trade pressures on major economies, including the European Union, Japan, Mexico, Canada, and South Korea. This move comes amidst a global economic landscape that is already navigating various challenges, including supply chain issues and changing consumer demands.
Official Responses from Affected Automakers
In response to these developments, some automakers have already begun to take measures to mitigate the potential financial impact. General Motors (GM) has announced plans to invest $4 billion in expanding its U.S. production capabilities and to introduce new vehicle models to its domestic lineup. This is part of GM's strategy to address the risks posed by the new tariffs.
Similarly, a spokesperson from Mercedes‑Benz USA has emphasized the company's commitment to maintaining consistent pricing for their current model year 2025 vehicles.
We recognize the importance of consistency and transparency for our customers and dealer partners and are committed to maintaining current MY25 pricing until further notice.
Financial Impact Assessment
Tesla has reported an increase in costs attributable to these tariffs, with an additional $300 million in expenses in the second quarter of 2025 due to duties on imported electric‑vehicle components, such as batteries. Stellantis, on the other hand, reported a €300 million tariff‑related loss for the first half of 2025. GM forecasts that these tariffs could lead to an annual negative impact of $4‑5 billion.
The financial assessments by Moody’s and reported losses by companies highlight the challenges automakers face due to these tariffs. The broader impacts on the automotive industry's supply chain and pricing might continue to unfold as more information becomes available.
Cryptocurrency Market Implications
As of now, there is no direct impact observed on major cryptocurrencies such as ETH and BTC due to these tariffs. On‑chain analytics and dashboards monitoring Total Value Locked (TVL), exchange liquidity, and staking flows report no significant changes attributed to this development. Any indirect effects might stem from the broader economic impact these tariffs have on global trade and risk perceptions.
While no major blockchain projects or tokens associated with automotive supply chains have reported anomalies or issued statements, past events such as the U.S.–China trade war did not show a significant direct linkage to crypto markets either. Historical data suggest that market reactions might be more evident in traditional finance sectors.