Trump Tariffs Drag Down Porsche Stock and Force Industry Rethink:

Porsche and global automakers face mounting pressure amid rising U.S. tariffs and shifting trade policies.

Contents:

Porsche
Trump
Alibaba

Porsche

Trump Tariffs Hit Porsche Hard, Triggering a Stock Slump
Shares of German automaker Porsche dropped by over 5% on Tuesday after the company lowered its sales and profit margin forecasts for 2025.
The decline comes in response to U.S. tariffs on imported vehicles, with the company lacking any local manufacturing footprint in the United States.

Porsche now expects revenues between €37 and €38 billion,
down from a previous range of €39 to €40 billion. It also cut its projected earnings before interest and tax (EBIT) margin to 16.5%–18.5%,
compared to an earlier forecast of 19%–21%.

Chief Financial Officer Lutz Meschke stated that the impact of U.S. tariffs during April and May alone could result in losses of up to €100 million. He added that opening a manufacturing facility in the U.S. is currently off the table due to weak local demand.
The company plans to pass part of the additional tariff costs onto its customers.

Trump

Trump Plans to Ease Tariffs to Support Automakers and U.S. Workers
U.S. President Donald Trump is preparing to announce measures aimed at reducing the impact of tariffs on auto manufacturers.
According to administration officials, the plan includes easing import duties on spare parts used in vehicles assembled within the United States.

Commerce Secretary Howard Lutnick, in a statement from the White House,
said Trump seeks to strengthen collaboration with domestic automakers and support American workers—a move he described as balancing protectionism with local production incentives.

As reported by The Wall Street Journal, the proposal includes exempting automakers from extra duties on materials such as steel and aluminum.
Companies would also be reimbursed for previously paid tariffs.
The official announcement is scheduled for Tuesday, coinciding with a Trump rally in Michigan—America’s automotive heartland—marking the 100th day of his new term in office.

Alibaba

Alibaba Launches Qwen3 AI Model to Challenge Global Tech Giants
Chinese tech conglomerate Alibaba announced on Tuesday the release of Qwen3, the second-generation open-source language model.
This advanced version builds upon the group’s previous AI model and showcases major improvements in instruction comprehension, logical reasoning, tool usage, and multilingual capabilities.

According to CNBC, Qwen3 competes directly with leading models such as R1 by DeepSeek, Grok-3 by xAI,
and Gemini-2.5-Pro by Alphabet. Alibaba noted that Qwen3 achieved strong results in benchmark tests across programming,
mathematics, and general problem-solving, even outperforming certain OpenAI models like o1 and o3-mini.

This move comes as the global AI race intensifies, with Chinese companies striving to secure a stronger position against Silicon Valley heavyweights.

Trump Tariffs Drag Down Porsche Stock and Force Industry Rethink

Trump Tariffs Drag Down Porsche Stock

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