The global automotive industry has just recovered after the COVID-19 epidemic, but it is once again facing severe shocks due to the geopolitical conflicts caused by the Russia-Ukraine war and the tariff war initiated by US President Trump.

The US' imposition of tariffs on Mexico and Canada has caused market anxiety, and new car sales fell to 1.22 million units in February, down by 2.3% year on year, the first decline in five months.

China is affected by high import tariffs from the US, Canada, the EU, and other regions. Although automobile production and sales in February increased by more than 30% year on year, they still fell by 12% to 14% month on month, a significant decline from the monthly average of 2.6 million vehicles in 2024, indicating that China’s automobile market is in recession.

The US' steel and aluminum tariff policy has already hit the steel market hard, and the impact of automobile tariffs is also notable, which may put the steel market in difficulties because the automobile industry is the main source of demand for steel.