Money blog: Tesla takes another hit - this time from Trump; world leaders condemn new tariffs (2025)

Markets have reacted to news of tariffs with about as much optimism as one would expect.

Europe

Declines in car stocks pushedEuropean shares to a two-week low, with the pan-European STOXX 600 down 1% to hit itslowest point since March 14.

The STOXX 600 autos sector slumped more than 3.3%, on track to erase all of its gains seen this year.

Shares of Volkswagen, vulnerable due to its large supply base inMexico and lack of US production for its Audi and Porschebrands, dropped 3.6%.

Chrysler parent Stellantis slumped 6.4%, BMWfell 3.9%, Porsche slid 4.2%, while VolvoCars and car parts maker Continental shedabout 2.5% each.

Asia

In Asia, Toyota Motor and Mazda Motor led declinesin stocks in Japan, which relies on autos for more than aquarter of its exports to the US.

Toyota Motor stock dove 2%, Honda stock dipped 2.5%, Nissan was down 1.7% and Mazda shares plummeted 6%.

Shares in Subaru slipped 5% and Mitsubishi lost 3.2%.

Shares of automakers in SouthKorea, Hyundai Motor and Kia Corp, fellsharply, down 4.3% and 3.5% respectively, while India automakers and parts suppliers also slid.

US

Shares of US automakers, which are highly integrated with plants and suppliers in Canada and Mexico, fell in after-hours trading, while US equity index futures slid, indicating stocks are headed for a lower open today.

Yesterday afternoon, shares in General Motors fell by about 3%, Ford's stock was up slightly, but shares in Stellantis, the owner of Jeep and Chrysler, dropped nearly 4%.

Tesla dropped 5.6% to extend its loss for 2025 to 32.6%.

British carmakers have pleaded with the UK and US governments to avoid impending auto tariffs.

Mike Hawes, chief executive of the UK car industry lobby group SMMT, said it "urges both sides to come together immediately and strike a deal".

He said Donald Trump's announcement was "not surprising but, nevertheless, disappointing".

"The UK and US auto industries have a long-standing and productive relationship, with US consumers enjoying vehicles built in Britain by some iconic brands, while thousands of UK motorists buy cars made in America.

"Rather than imposing additional tariffs, we should explore ways in which opportunities for both British and American manufacturers can be created as part of a mutually beneficial relationship, benefitting consumers and creating jobs and growth across the Atlantic."

The UK is not planning to introduce retaliatorytariffson the US "at the moment", Rachel Reeves has told us this morning.

Speaking to presenter Wilfred Frost, the chancellor said there was a "big week ahead" in ongoing talks with the US.

"We're not at the moment at a position where we want to do anything to escalate these trade wars.

"Trade wars are no good for anyone. It will end up with higher prices for consumers, pushing up inflation after we've worked so hard to get a grip of inflation, and at the same time will make it harder for British companies to export."

She continued: "We are looking to secure a better trading relationship with the United States. I recognise that the week ahead is important. There are further talks going on today, so let’s see where we get to in the next few days."

But the Liberal Democrats have said the government needs to "toughen up" and start placing retaliatorytariffson US carmakers like Elon Musk's Tesla.

The party's deputy leader Daisy Cooper told BBC Radio 4: "I think there's only one language that Donald Trump understands, and that is the language of strength.

"What we Liberal Democrats are very concerned about is that the government strategy so far seems to be to cower in the corner and just ask Donald Trump to be nice to us and just to hope that he doesn't do anything nasty."

Elon Musk has said the impact of Donald Trump's car tariffs on his company, Tesla, is "significant."

"Important to note that Tesla is NOT unscathed here. The tariff impact on Tesla is still significant," he posted on X.

But Trump said the tariffs could be net neutral for Tesla.

He said his key adviser Musk had not advised on the matter "because he may have a conflict".

Tesla and other carmakers commonly buy headlamps, glass, brakes, body panels, suspension parts and circuit boards from foreign suppliers in Mexico, Canada and China.

The company recently wrote to the US Trade Representative, the agency that develops the country's foreign trade policies, saying "certain parts and components are difficult or impossible to source within the United States".

It's not just tariffs hitting Tesla. Elon Musk's outsized influence in US politics and support of Donald Trump has dented sales and market share.

Earlier this week we reported how Tesla sales in Europe fell by nearly half.

The company sold less than 17,000 cars in 25 EU markets, the UK, Norway and Switzerland in February - down from more than 28,000 in the same month last year, according to the European Automobile Manufacturers Association.

Its electric vehicle market share fell to 10.3% - down from 21.6% last year.

There have also been protests and outbreaks of vandalism at Tesla dealerships and EV charging points across the US.

Tesla bumper stickers with messages such as "I bought this before Elon went crazy" and "Anti-Elon Tesla Club" have grown in popularity.

Meanwhile, some investors who approve of what Musk is doing for the Trump administration may have concerns it is proving too much of a distraction from the day job of running Tesla.

World leaders have been quick to condemn Donald Trump's auto tariffs.

European Commission President Ursula von der Leyen described the move as "bad for businesses, worse for consumers".

Canadian Prime Minister Mark Carney labeled the tariffs a "direct attack" on Canadian workers and said retaliatory measures were being considered.

Japanese Prime Minister Shigeru Ishiba said Tokyo will put "all options on the table" in dealing with the new tariffs and South Korea said it would put in place an emergency response for its hard-hit auto industry by April.

Brazil's President Luiz Inacio Lula da Silva said Trump risked damaging the US economy.

"Protectionism doesn't help any country in the world," Lula said, vowing to lodge a complaint with the World Trade Organization over a trade levy on Brazilian steel.

Donald Trump has announced a new 25% tariff on all imported cars.

Signing an executive order last night, Trump said the tax would kick in on 2 April - what he has called "liberation day".

This is when all his retaliatory import tariffs are supposed to take effect, but they have been delayed before.

The move ratchets up the global trade war Trump himself kicked off at a time when his administration is battling the continued fallout from the Signalgate security breachin Washington.

Watch the moment Trump announced the tariffs...

And read our full story here:

Every Thursday we interview chefs from around the UK, hearing about their cheap food hacks and more. Today we chat to Alex Naik, head chef at the family-run tasting menu restaurant Thirteen in Poole, Dorset.

The one thing I hate that customers do is... turning up without providing us with their dietary requirements. We run a 13-course tasting menu, so as you can imagine if they tell us on arrival that they are lactose intolerant (for example) it is very hard for us to make that many changes on the spot.

The worst type of behaviour in kitchens is... having a negative attitude. Negativity from one member of staff can bring the whole mood of the kitchen down.

The most overrated single food item is… foie gras. Once it was seen as the height of luxury, but now I feel this is more of a showy thing found on menus to make an establishment seem fancy, not to mention it's unethical.

The best chef in the UK is…Simon Rogan. Having eaten at L'Enclume before it received its third Michelin star,I was just blown away by the complexity of flavour and simplicity of presentation of the food, use of ingredients and care given from growing to preparation.

You asked me why there are so few female chefs in top kitchens but I disagree...There are many very talented women in top kitchens across the UK. Claire Smyth, Monica Galetti, Sally Abe, Adejoke Bakare, Helene Darroze, Angela Hartnett, Chantelle Nicholson to name but a few...

One cheap place I love where I live is...Miso Rice Bar in Bournemouth. This tiny family-run eatery specialises in Korean cuisine. You can tell from the moment you walk through the door that all the food is cooked with love. Mum is behind the stove, with son running front of house. Big smiles and delicious food. What I order: bulgogi bibim-bap for £8.90.

My go-to cheap eat at home is... tuna pasta bake. Here's my recipe:

• 200g penne (any robust pasta will do)
• 1 tin chopped tomatoes
• 1 onion
• 2 cloves of garlic
• Handful frozen peas
• 1 tsp salt
• 1 tbsp dried mixed herbs
• Whatever cheese you have lurking in your fridge
• 1 tin of tuna

Sweat the onions and garlic in a little vegetable oil. Add the chopped tomatoes and herbsand peas.Cook the pasta until al dente. Combine pasta, tuna and sauce in an oven-proof dish and grated cheese ontop, bake until cheese is melted and golden and enjoy.

The best city in the world to eat in is...San Sebastian in Spain.

One ingredient you should never skimp on is... truffle.

I've cut costs in my restaurant by...growing our own produce. It has really helped, especially when it comes to expensive herbs and flowers. We also do all of our own laundry, which has helped save us more than£700 a month.

That's all for our live coverage in the Money blog today but we're working with the UK Tonight team this evening to bring you all the latest on what the spring statement means for you.

Our presenter Sarah-Jane Meeis hosting the show as usual, and our Money live reporter Jess Sharpis joining, along with financial experts Abi Foster and Cameron Smith.

They'll be answering your questions and exploring all the key issues from 8pm - watch along in the stream at the top of the page.

By Saywah Mahmood, data journalist

The Treasury has estimated how government decisions on tax, welfare and public service spending will affect household incomes.

The analysis covers all the decisions made from the autumn budget last year to today's spring statement and looks at the impact across the income distribution - from the lowest to the highest-income households:

Their analysis shows that, on average, the lowest-income households in 2028-29 will benefit the most from government decisions at those events, if decisions relating to public service spending are included.

Increases in tax will mostly affect the highest income households.

But without public service spending decisions included, lower-income households are hit hardest by decisions on welfare changes:

In a rush? Catch up on all the key announcements in Rachel Reeves's spring statement here - including welfare cuts and a defence spending boost:

And data and economics editor Ed Conwaycrunches the numbers here: