Trump Tariffs Weigh on Global Auto, NZ Economies, Supply Chains

The introduction of sweeping tariffs by the Trump administration has triggered significant uncertainty and financial repercussions across global industries, particularly impacting automakers and multinational manufacturers. Major car producers, including Ford, Nissan, and Stellantis, have warned of multi-billion dollar losses, paused production, or suspended earnings guidance due to escalating costs and volatile trade conditions, with Wall Street estimating auto industry losses could exceed $80 billion and drastically slash earnings. In New Zealand, the IMF has downgraded economic growth forecasts, citing tariff shocks and global slowdown, while local companies continue to face earnings downgrades and uncertainty. Nike, heavily reliant on contract manufacturing in Vietnam, Indonesia, and China, saw its shares plunge and could face a 95% profit decline if tariffs persist, likely increasing pressure on its suppliers and workers. South Africa’s automotive sector, responsible for a significant portion of exports to the US, is also under threat, with exports already dropping and the industry deemed 'particularly vulnerable' to the new tariffs. While some temporary tariff pauses have been enacted, the broader business environment remains clouded by unpredictable trade policy and concerns over supply chain adjustments and workforce impacts.