US President Donald Trump is due to announce new tariffs on imported cars, reviving uncertainty among investors about his administration’s trade policy and sending stocks on Wall Street lower.
The president will hold a press conference at 4pm in Washington (9am NZ time) to announce the new import levy, which may come into effect as soon as this week. The White House is reportedly weighing up plans to impose tariffs on finished vehicles, but not auto parts.
Investors have been whipped back and forward by the US administration’s changing stance on tariffs, with April 2 still set down for the announcement of a global package of reciprocal import levies, albeit narrower than what had earlier been flagged.
Stocks on Wall Street sank as the tech-heavy Nasdaq Composite declined 2.1% and the broader S&P 500 fell 1.2%, with tech stocks and auto companies among the hardest hit. Tesla was down 5.7% in afternoon trading.
“There is some chatter that the anticipated date of the reciprocal tariff announcement on 2 April could still shift,” ANZ New Zealand economists said in a note. “But until clarity emerges on the magnitude and scope of tariffs and their implementation, risk appetite is likely to remain muted.”
Creeping fears
The broad uncertainty seeped across the Atlantic with Germany’s DAX 30 down 1.2% and France’s CAC 40 declining 1%. The Financial Times reported the European Union’s top trade negotiator expects the US to impose tariffs of about 20% in next week’s announcement.
Meanwhile, stocks in the UK were buoyed by finance minister Rachel Reeves paring back her spending plans in the face of a softer economy. The FTSE 100 index rose 0.3%.
The downbeat tone is expected carry over into the antipodes, with Australian futures pointing to a 0.6% decline for the S&P/ASX 200 index today. The kiwi dollar traded at 57.30 US cents at 7am in Auckland from 57.47 cents yesterday.
No local data is scheduled for today, while New Zealand King Salmon Investments is due to report its annual earnings on the NZX.
Across the Tasman, Virgin Australia is kicking the tyres for a potential initial public offering with a non-deal roadshow for investors, joining furniture maker Koala Furniture among firms said to be investigating a listing.
Reporting by Paul McBeth. Image from Rinson Chory on Unsplash.
