The global automotive supply industry is facing significant challenges following the implementation of a 25% tariff on foreign-made cars imported into the U.S. and the upcoming 25% levy on imported auto parts, which will take effect on May 3. These tariffs, announced by U.S. President Donald Trump, are expected to have far-reaching consequences for the car industry, leading to potential job losses, plant closures, and a decrease in investment across the sector.

Euronews spoke with Benjamin Krieger, Secretary General of the European Association of Automotive Suppliers (CLEPA), who outlined the potential impact of these tariffs on the global auto supply chain. CLEPA serves as a key link between European automotive suppliers and policymakers.

Krieger emphasized that the tariffs could severely increase production costs for automotive suppliers, many of whom operate in a highly integrated global market. “The industry is very globally connected, with European suppliers often investing in manufacturing facilities across the U.S., Europe, Canada, Mexico, and Asia. Components frequently cross multiple borders, and tariffs on these goods will raise costs, which are often absorbed by the automotive suppliers,” Krieger explained.

This increase in costs poses a serious threat to the competitiveness of the industry. With already slim profit margins, suppliers may face difficult decisions, including scaling back investments or even closing factories, leading to potential job losses. “The additional pressure will certainly result in factory closures and job losses,” Krieger warned.

As the tariffs target not just finished cars but also essential auto parts, they are likely to disrupt the industry’s delicate balance. “For suppliers, we either have to relocate production, abandon investments made in recent years, absorb the cost, or lose market share. There’s no ideal solution,” Krieger said, highlighting the tough choices ahead for suppliers.

Krieger also expressed concerns that the tariffs could reverse the progress made in the automotive sector over recent decades. “There’s a real risk that we could lose the gains we’ve built in the last decades,” he added, stressing the long-term damage these tariffs could inflict on the global automotive supply chain.

In response to the tariffs, Krieger suggested that the European Union must provide clear guidance on how to move forward. “We need clarity on the tariffs being applied and their implications for our trade relationships. Understanding the impact will help us quantify the problem and determine the effects on different European countries,” he said.

He also called for the EU to strengthen the competitiveness of its own auto supply industry. Countries like Germany, which have thriving automotive sectors, may be hit hardest by the U.S. tariffs, and will likely seek new markets to offset losses. “I hope for a measured response from the EU. It’s important that we show unity and pursue agreements with the U.S. while also prioritizing our strategic independence,” Krieger said.

As the situation unfolds, the automotive supply industry faces uncertain times, with both the U.S. tariffs and the EU’s response set to shape the future of the global car industry.

Amazon has submitted a last-minute bid to acquire TikTok, a Trump administration official confirmed on Wednesday, as the deadline for a US ban on the popular social media platform approaches. The offer was made in a letter addressed to Vice President JD Vance and Commerce Secretary Howard Lutnick, according to an official who spoke on condition of anonymity.

The bid was first reported by The New York Times, coming just days before the deadline for TikTok’s Chinese parent company, ByteDance, to sell the platform to an approved buyer or face a ban in the United States. While President Donald Trump has suggested he may extend the deadline, he has also indicated that he expects a deal to be finalized by Saturday.

Possible Investors in TikTok

Amazon’s interest in TikTok adds another player to an already competitive field of potential buyers. Among the companies that have expressed interest in acquiring TikTok’s US operations are Oracle and Blackstone. Oracle, which secured a 12.5% stake in TikTok Global in 2020, has long been seen as a leading contender, given its role as the app’s cloud technology provider.

In January, AI startup Perplexity AI proposed a merger with TikTok’s US division, suggesting it could rebuild the platform’s algorithm while avoiding monopoly concerns. The company emphasized its commitment to maintaining American oversight and data security in a blog post outlining its vision for TikTok’s future.

Other potential buyers include a consortium led by billionaire Frank McCourt, who recently brought on Reddit co-founder Alexis Ohanian as a strategic adviser. The group has reportedly offered ByteDance $20 billion in cash. Meanwhile, Employer.com founder Jesse Tinsley has assembled a competing consortium and is said to be offering over $30 billion. Additionally, Wyoming entrepreneur Reid Rasner has reportedly submitted a bid worth approximately $47.5 billion.

Concerns Over National Security

TikTok’s future in the US remains uncertain due to national security concerns raised by American officials. Both the FBI and the Federal Communications Commission have warned that ByteDance could potentially share US user data with the Chinese government. However, TikTok has repeatedly denied these claims, stating it has never provided data to Chinese authorities and would refuse to do so if asked. To date, the US government has not presented concrete evidence supporting the allegations.

Trump’s relationship with TikTok has been complex. Although he has millions of followers on the platform and has credited it with helping him connect with younger voters, his administration has also pushed for restrictions on the app. During his first term, he issued executive orders targeting both ByteDance and Chinese messaging app WeChat, citing security concerns.

With the deadline for TikTok’s fate rapidly approaching, all eyes are on ByteDance and the US government to determine whether Amazon’s bid—or another offer—will secure the platform’s future in the United States.

The euro reached a nearly five-month high against the US dollar after President Donald Trump announced sweeping reciprocal tariffs, leading to a broad decline in the greenback. Global markets reacted sharply to the news, with stock indices plummeting and bond yields dropping amid growing economic uncertainty.

Following Trump’s announcement on Wednesday night, the euro rose 0.5% against the dollar, reaching 1.0915 at 5:17 am, close to its five-month peak of 1.0953. The surge nearly erased losses suffered since Trump’s re-election on November 5. The US president stated that his administration would impose a minimum 10% tariff on all countries, with additional higher levies targeting key trading partners. China, the European Union, and Vietnam topped the list of affected nations, facing tariffs of 34%, 20%, and 46%, respectively. China’s import duties will rise to 54% when combined with existing blanket tariffs.

The US dollar weakened significantly against major currencies, including the euro, Japanese yen, British pound, and Swiss franc, as investors feared economic repercussions. The yield on 10-year US Treasury bonds fell to its lowest level since October 2024, reflecting expectations of a slowdown. Meanwhile, commodity-linked currencies, such as the Australian and Canadian dollars, declined against the US dollar, as falling crude oil and copper prices weighed on their performance.

Global Markets Tumble

The tariff announcement triggered a broad sell-off in global equities, with stock markets across Asia experiencing significant losses on Thursday. Japan’s Nikkei 225 dropped nearly 3%, China’s Hang Seng Index slid 1.5%, while Australia’s ASX 200 and South Korea’s Kospi declined by 1% each. The selloff extended to mining stocks, with Australia’s BHP falling 2.4% and Rio Tinto dropping 2.8%. Weaker copper prices also pressured European equities, particularly those tied to the commodities sector.

Market analyst Josh Gilbert of eToro noted that while Australia has minimal direct trade exposure to the US, the broader impact on China and other Asian economies could weigh heavily on Australia’s export-driven market. The economic fallout could intensify if global demand slows and commodity prices continue to decline.

In the US, stock futures pointed to a sharp downturn, with the Dow Jones Industrial Average losing 2.01%, the S&P 500 falling 2.78%, and the Nasdaq dropping 3.3% in pre-market trading. European markets were also set to open lower, with Germany’s DAX futures down 1.89% as of 5:30 am CET. Tech stocks, particularly the “Magnificent Seven,” suffered heavy losses in after-hours trading, with Tesla down 4.5%, Apple losing 2.3%, and Nvidia declining 2.4%. Analysts warned that companies with significant exposure to China, such as Apple, could face further pressure in the coming weeks.

Gold Reaches Record High Amid Economic Uncertainty

The heightened risk-off sentiment sent gold prices soaring to a new all-time high, as investors sought safe-haven assets. Gold futures surged to $3,195 per ounce on COMEX, while spot gold touched $3,167 before slightly retreating.

Kyle Rodda, a senior market analyst at Capital.com, warned that uncertainties surrounding Trump’s trade policies could drive further demand for gold. “There was no clear indication that the Trump administration will stop here with ‘trade wars.’ That could mean further uncertainty,” Rodda said.

Gold has been one of the top-performing asset classes, rising 20% this year following a 30% surge in 2024. Factors such as increased central bank purchases, concerns over US dollar depreciation, and investor hedging strategies have contributed to gold’s sustained rally.

As markets brace for further volatility, traders remain cautious, with attention focused on potential retaliatory measures from affected trading partners and the broader implications for global trade.