Trump Announces EU Auto Tariffs Increase to 25%
Catch up on the top industries and stocks that were impacted, or were predicted to be impacted, by the comments, actions and policies of President Donald Trump with this daily recap compiled by The Fly.TARIFFS:President Donald Trump said via Truth Social, "I am pleased to announce that, based on the fact the European Union is not complying with our fully agreed to Trade Deal, next week I will be increasing Tariffs charged to the European Union for Cars and Trucks coming into the United States. The Tariff will be increased to 25%. It is fully understood and agreed that, if they produce Cars and Trucks in U.S.A. Plants, there will be NO TARIFF. Many Automobile and Truck Plants are currently under construction, with over 100 Billion Dollars being invested, A RECORD in the History of Car and Truck Manufacturing. These Plants, staffed with American Workers, will be opening soon - There has never been anything like what is happening in America today! Thank you for your attention to this matter. President DONALD J. TRUMP" Publicly traded companies in the space include Ford, General Motors, Honda, Lucid Group, Mercedes-Benz, Nissan, Rivian, Stellantis, Tesla, Toyotaand Volkswagen.STRAIT OF HORMUZ:President Trumpin social media, "Countries from all over the World, almost all of which are not involved in the Middle Eastern dispute going on so visibly, and violently, for all to see, have asked the United States if we could help free up their Ships, which are locked up in the Strait of Hormuz, on something which they have absolutely nothing to do with - They are merely neutral and innocent bystanders! For the good of Iran, the Middle East, and the United States, we have told these Countries that we will guide their Ships safely out of these restricted Waterways, so that they can freely and ably get on with their business. Again, these are Ships from areas of the World that are not in any way involved with that which is currently taking place in the Middle East. I have told my Representatives to inform them that we will use best efforts to get their Ships and Crews safely out of the Strait. In all cases, they said they will not be returning until the area becomes safe for navigation, and everything else. This process, Project Freedom, will begin Monday morning, Middle East time. I am fully aware that my Representatives are having very positive discussions with the Country of Iran, and that these discussions could lead to something very positive for all. The Ship movement is merely meant to free up people, companies, and Countries that have done absolutely nothing wrong - They are victims of circumstance. This is a Humanitarian gesture on behalf of the United States, Middle Eastern Countries but, in particular, the Country of Iran. Many of these Ships are running low on food, and everything else necessary for largescale crews to stay on board in a healthy and sanitary manner. I think it would go a long way in showing Goodwill on behalf of all of those who have been fighting so strenuously over the last number of months. If, in any way, this Humanitarian process is interfered with, that interference will, unfortunately, have to be dealt with forcefully."TROOPS IN GERMANY:The Pentagon intends to pull roughly 5,000 American troops from Germany, CBS News' Jennifer Jacobs, citing senior defense officials. The officials described the move as a signal of President Donald Trump's lack of satisfaction with the level of assistance European allies have offered to the U.S. in its war with Iran, Jacobs says. Over 36,000 active duty soldiers were assigned to bases throughout Germany as of last December, along with nearly 1,500 reservists and 11,500 civilians, Jacobs notes.BUSINESS MIX CHALLENGE:Kevin McGurn faces a challenge as the new head of Trump Media & Technology Group, namely figuring out how to package the company's odd mix of business ventures, The Wall Street Journal's Jennifer Hiller. McGurn is a longtime media executive and adviser who took over last week as interim chief executive of the company, best known as the parent of Truth Social, President Trump's social-media platform. Launched after Trump's ban from Twitter in 2021, Trump Media's businesses span social media, cryptocurrency and most recently, a $6B bet on nuclear fusion, the author notes. "Having those two businesses together or apart will be both options that we weigh, and I think we will pick the best path, but currently, the one that we're pursuing is the spinout," McGurn said in his first interview as interim CEO.
Trade with 70% Backtested Accuracy
Analyst Views on F
About F
About the author
Analysis of Ford's Energy Business Prospects
- New Business Launch: Ford announced its energy storage business in May, leading to a 47% stock price increase, with projections suggesting it could generate $500 million in operating profit by 2030, indicating strong market enthusiasm for its strategic pivot.
- EV Challenges: The company has incurred $16 billion in losses from its EV division, with management forecasting continued losses for the next three years, prompting Ford to seek recovery through its energy storage initiative, demonstrating adaptability to market pressures.
- Investment and Capacity Goals: Ford aims to produce up to 20 gigawatts of battery storage capacity over the next five years, committing $2 billion to kickstart this business, which underscores its focus on new market opportunities and long-term strategic planning.
- Market Reaction and Risks: Although Ford's energy business has yet to generate profit or revenue, the stock surge reflects investor optimism towards AI-related ventures; however, analysts caution that shareholders should prioritize cost management and vehicle sales improvements to ensure long-term financial stability.
Ford Shifts Focus to Energy Storage Business
- Launch of Energy Storage: Ford announced in May the launch of Ford Energy, aiming to produce up to 20 gigawatts of battery storage capacity over the next five years, with deliveries starting in 2028, as a strategy to recover from $16 billion in losses from its EV division.
- Optimistic Profit Forecast: Analysts predict that Ford Energy could generate $500 million in operating profit by 2030, which, while modest compared to Ford's nearly $6.8 billion EBIT last year, indicates the company's proactive approach to exploring new revenue streams.
- Investment and Market Reaction: Ford plans to invest $2 billion in this new venture, and despite having no current profits or revenues, its stock surged 47% last month due to investor enthusiasm for its energy storage business, reflecting a broader excitement for AI-related initiatives.
- Future Challenges and Risks: While Ford's move into energy storage is noteworthy, analysts caution that investors should not rush to buy the stock solely based on this transition, especially given the company's ongoing challenges, including a staggering $8.2 billion net loss related to its EV restructuring.
EV Demand Rebounds, Ford Seizes Opportunity
- EV Sales Rebound: In May, U.S. EV sales surpassed 85,000 units despite the absence of federal tax credits, indicating a significant recovery since last year's third quarter, which may present new growth opportunities for EV manufacturers.
- Average Transaction Price Decline: The average transaction price for EVs fell to $54,532 in May, a 4% decrease from the previous year, suggesting that manufacturers are working to reduce costs despite rising demand, which could impact future pricing strategies.
- Increased Incentive Spending: Automakers allocated approximately 14% of an EV's ATP to incentives, equating to about $7,600 per vehicle, which is double the industry average and may pressure profit margins, warranting close investor scrutiny.
- Ford's Strategic Shift: Ford plans to launch a new midsize EV platform in 2027, and despite a 58% decline in EV sales year-to-date, the rebound in market demand offers hope for future profitability, highlighting the company's potential in the EV sector.
BYD Considers Entering Formula 1 Racing
- Brand Expansion Plan: BYD is interested in entering the F1 circuit to enhance its brand presence outside China, although becoming the first Chinese F1 team could cost hundreds of millions, significantly impacting its financials.
- Market Potential Analysis: With 221.1 million F1 fans in China and BYD being the world's largest EV maker, a successful entry into F1 could greatly aid its international market expansion.
- Sponsorship Strategy Advantage: By sponsoring a midfield or back-of-the-pack team, BYD could participate in F1 at a lower cost, avoiding hefty infrastructure investments and technical compliance requirements, thus reducing risk while increasing brand visibility.
- Competition and Challenges: While sponsorship may be a lower-risk option, BYD's status as an OEM could conflict with existing F1 auto manufacturers, potentially affecting its brand positioning and technical showcase in the sport.
Ford Enters Battery Storage Market with New Subsidiary
- New Business Launch: Ford has officially launched Ford Energy, a subsidiary focused on providing large-scale battery storage systems for data centers and the electric grid, marking a significant entry into the rapidly growing AI infrastructure market.
- Stock Price Fluctuation: Following the announcement of the new business, Ford's stock price surged above $17 but has since retreated to around $14, indicating mixed short-term market reactions that investors should consider carefully.
- Growing Market Demand: As the construction of new data centers accelerates, the demand for battery storage is skyrocketing, with Ford planning to produce at least 20 gigawatts of battery storage capacity annually to capitalize on this trend.
- Long-Term Investment Opportunity: While Ford Energy may not deliver immediate profits, Cramer believes that it will make Ford a more attractive investment in the long run, especially as oil prices and interest rates are expected to decline.
Stellantis Faces Major Turnaround Challenges
- Stock Performance Divergence: Over the past three years, GM's stock surged 124%, Ford's gained a mere 4%, while Stellantis plummeted nearly 60%, highlighting significant differences in market performance that reflect each company's operational strategies and market acceptance.
- Recall Cost Pressure: Ford led the U.S. automotive industry in 2025 with 153 recalls, while Stellantis followed with 53; however, 80% of Ford's recalls were resolved via over-the-air software updates, minimizing repair costs, whereas Stellantis faced staggering warranty expenses of $7.4 billion, indicating quality control challenges.
- Warranty Expense Comparison: Stellantis's warranty costs accounted for 4.4% of total revenue, significantly exceeding the historical industry norm of 2% to 3%, while Ford's ratio stood at 3.1%, showing an upward trend, yet Ford's improvement in warranty claims reflects its commitment to quality management.
- Future Growth Potential: Stellantis plans to invest $70 billion over the next decade for a comprehensive product overhaul, with approximately 60% allocated to North America, aiming to launch 11 new models and achieve a 35% sales increase in the region, which could enhance market share and profitability if successful.
Analysis of Ford's Energy Business Prospects
- New Business Launch: Ford announced its energy storage business in May, leading to a 47% stock price increase, with projections suggesting it could generate $500 million in operating profit by 2030, indicating strong market enthusiasm for its strategic pivot.
- EV Challenges: The company has incurred $16 billion in losses from its EV division, with management forecasting continued losses for the next three years, prompting Ford to seek recovery through its energy storage initiative, demonstrating adaptability to market pressures.
- Investment and Capacity Goals: Ford aims to produce up to 20 gigawatts of battery storage capacity over the next five years, committing $2 billion to kickstart this business, which underscores its focus on new market opportunities and long-term strategic planning.
- Market Reaction and Risks: Although Ford's energy business has yet to generate profit or revenue, the stock surge reflects investor optimism towards AI-related ventures; however, analysts caution that shareholders should prioritize cost management and vehicle sales improvements to ensure long-term financial stability.
Ford Shifts Focus to Energy Storage Business
- Launch of Energy Storage: Ford announced in May the launch of Ford Energy, aiming to produce up to 20 gigawatts of battery storage capacity over the next five years, with deliveries starting in 2028, as a strategy to recover from $16 billion in losses from its EV division.
- Optimistic Profit Forecast: Analysts predict that Ford Energy could generate $500 million in operating profit by 2030, which, while modest compared to Ford's nearly $6.8 billion EBIT last year, indicates the company's proactive approach to exploring new revenue streams.
- Investment and Market Reaction: Ford plans to invest $2 billion in this new venture, and despite having no current profits or revenues, its stock surged 47% last month due to investor enthusiasm for its energy storage business, reflecting a broader excitement for AI-related initiatives.
- Future Challenges and Risks: While Ford's move into energy storage is noteworthy, analysts caution that investors should not rush to buy the stock solely based on this transition, especially given the company's ongoing challenges, including a staggering $8.2 billion net loss related to its EV restructuring.
EV Demand Rebounds, Ford Seizes Opportunity
- EV Sales Rebound: In May, U.S. EV sales surpassed 85,000 units despite the absence of federal tax credits, indicating a significant recovery since last year's third quarter, which may present new growth opportunities for EV manufacturers.
- Average Transaction Price Decline: The average transaction price for EVs fell to $54,532 in May, a 4% decrease from the previous year, suggesting that manufacturers are working to reduce costs despite rising demand, which could impact future pricing strategies.
- Increased Incentive Spending: Automakers allocated approximately 14% of an EV's ATP to incentives, equating to about $7,600 per vehicle, which is double the industry average and may pressure profit margins, warranting close investor scrutiny.
- Ford's Strategic Shift: Ford plans to launch a new midsize EV platform in 2027, and despite a 58% decline in EV sales year-to-date, the rebound in market demand offers hope for future profitability, highlighting the company's potential in the EV sector.
BYD Considers Entering Formula 1 Racing
- Brand Expansion Plan: BYD is interested in entering the F1 circuit to enhance its brand presence outside China, although becoming the first Chinese F1 team could cost hundreds of millions, significantly impacting its financials.
- Market Potential Analysis: With 221.1 million F1 fans in China and BYD being the world's largest EV maker, a successful entry into F1 could greatly aid its international market expansion.
- Sponsorship Strategy Advantage: By sponsoring a midfield or back-of-the-pack team, BYD could participate in F1 at a lower cost, avoiding hefty infrastructure investments and technical compliance requirements, thus reducing risk while increasing brand visibility.
- Competition and Challenges: While sponsorship may be a lower-risk option, BYD's status as an OEM could conflict with existing F1 auto manufacturers, potentially affecting its brand positioning and technical showcase in the sport.
Ford Enters Battery Storage Market with New Subsidiary
- New Business Launch: Ford has officially launched Ford Energy, a subsidiary focused on providing large-scale battery storage systems for data centers and the electric grid, marking a significant entry into the rapidly growing AI infrastructure market.
- Stock Price Fluctuation: Following the announcement of the new business, Ford's stock price surged above $17 but has since retreated to around $14, indicating mixed short-term market reactions that investors should consider carefully.
- Growing Market Demand: As the construction of new data centers accelerates, the demand for battery storage is skyrocketing, with Ford planning to produce at least 20 gigawatts of battery storage capacity annually to capitalize on this trend.
- Long-Term Investment Opportunity: While Ford Energy may not deliver immediate profits, Cramer believes that it will make Ford a more attractive investment in the long run, especially as oil prices and interest rates are expected to decline.
Stellantis Faces Major Turnaround Challenges
- Stock Performance Divergence: Over the past three years, GM's stock surged 124%, Ford's gained a mere 4%, while Stellantis plummeted nearly 60%, highlighting significant differences in market performance that reflect each company's operational strategies and market acceptance.
- Recall Cost Pressure: Ford led the U.S. automotive industry in 2025 with 153 recalls, while Stellantis followed with 53; however, 80% of Ford's recalls were resolved via over-the-air software updates, minimizing repair costs, whereas Stellantis faced staggering warranty expenses of $7.4 billion, indicating quality control challenges.
- Warranty Expense Comparison: Stellantis's warranty costs accounted for 4.4% of total revenue, significantly exceeding the historical industry norm of 2% to 3%, while Ford's ratio stood at 3.1%, showing an upward trend, yet Ford's improvement in warranty claims reflects its commitment to quality management.
- Future Growth Potential: Stellantis plans to invest $70 billion over the next decade for a comprehensive product overhaul, with approximately 60% allocated to North America, aiming to launch 11 new models and achieve a 35% sales increase in the region, which could enhance market share and profitability if successful.
