Welcome to today’s podcast, where we discuss the latest in the auto industry and its challenges. A recent report from S&P Global has revealed potentially dire consequences for the U.S. auto market due to President Trump's tariffs. The report indicates a cut of 700,000 car and light truck sales from its 2025 forecast. S&P noted, “The impact of Trump’s auto tariffs...has led to one of the largest single-month changes we’ve ever made to the forecast.” This adjustment follows the significant disruptions caused by the COVID-19 pandemic and the 2008 financial crisis.

The tariffs, which include a 25% levy on all light-vehicle imports set to take effect and a similar tariff on auto parts, could lead to a potential 15-20% drop in new auto demand, according to analysts at Wedbush. They emphasized, “This auto tariff…will send the auto industry into upside down mode and raise the average price of cars between $5k on the low end and $10k to $15k on the high end.”

As we see stocks from major automakers like Ford and GM responding negatively, it raises concerns about the industry's future. Stay tuned for more insights on rising economic trends and their impact on our daily lives.
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