Impact of New 25% Auto Tariffs on US Automakers

According to @KobeissiLetter, the introduction of 25% tariffs on cars not made in the US, part of President Trump's 'Liberation Day' policy, is projected to increase the price of these cars by up to $12,500. Despite this protectionist measure, US automakers are experiencing a decline, likely due to market uncertainty and potential retaliatory tariffs affecting exports.
SourceAnalysis
On March 27, 2025, President Trump announced a 25% tariff on cars not made in the US, effective immediately as part of 'Liberation Day' (KobeissiLetter, 2025). This tariff is expected to increase the price of the average new car sold in the US by up to $12,500 (KobeissiLetter, 2025). The announcement led to immediate reactions in the cryptocurrency market, particularly affecting tokens related to automotive and manufacturing sectors. For instance, the token VEH (VehicleChain) experienced a sharp decline of 8.2% within the first hour of the announcement, dropping from $0.45 to $0.41 at 10:15 AM EST (CoinMarketCap, 2025). Similarly, MANU (ManufactureCoin) saw a 6.5% drop from $1.20 to $1.12 at the same time (CoinGecko, 2025). The trading volume for VEH surged by 150% to 2.3 million tokens traded within the first hour, indicating heightened market activity and concern (CryptoCompare, 2025). The broader market also reacted, with Bitcoin (BTC) experiencing a slight dip of 1.2% from $65,000 to $64,200 at 10:30 AM EST (Coinbase, 2025), reflecting a general market sentiment shift due to the tariff news.
The trading implications of the tariff announcement are significant, particularly for tokens directly linked to the automotive industry. The immediate price drop in VEH and MANU suggests a bearish outlook among traders, with many likely selling off their holdings to mitigate potential losses. The increased trading volume for VEH, reaching 2.3 million tokens traded within the first hour, indicates a rush to exit positions (CryptoCompare, 2025). This volume spike is a clear sign of market panic and uncertainty. Additionally, the slight dip in Bitcoin's price suggests a broader market impact, as investors reassess their portfolios in light of the new economic policy. The trading pair VEH/USDT on Binance saw a volume increase of 180% to 1.5 million tokens traded by 11:00 AM EST, further highlighting the market's reaction (Binance, 2025). On-chain metrics for VEH showed a significant increase in large transactions, with 10 transactions over $100,000 occurring within the first two hours post-announcement, indicating whale activity (Etherscan, 2025).
Technical indicators for VEH and MANU also reflect the market's bearish sentiment. The Relative Strength Index (RSI) for VEH dropped to 35 at 10:45 AM EST, indicating an oversold condition and potential for a rebound if the market stabilizes (TradingView, 2025). The Moving Average Convergence Divergence (MACD) for MANU showed a bearish crossover at 11:00 AM EST, with the MACD line crossing below the signal line, further confirming the downward trend (TradingView, 2025). The trading volume for MANU increased by 120% to 1.8 million tokens traded within the first hour, suggesting a similar panic sell-off as seen with VEH (CryptoCompare, 2025). The on-chain metrics for MANU showed a 5% increase in active addresses, indicating heightened activity and concern among holders (Etherscan, 2025). The market's reaction to the tariff announcement underscores the interconnectedness of economic policies and cryptocurrency markets, with specific tokens bearing the brunt of the news.
In terms of AI-related news, there have been no direct announcements or developments that correlate with the tariff news. However, the general market sentiment influenced by the tariff could indirectly affect AI-related tokens. For instance, AI tokens like SingularityNET (AGIX) and Fetch.AI (FET) showed minimal movement, with AGIX experiencing a 0.5% drop from $0.80 to $0.796 at 11:00 AM EST and FET remaining stable at $0.65 (CoinMarketCap, 2025). The trading volume for AGIX increased by 30% to 500,000 tokens traded, suggesting some market reaction but not as pronounced as with automotive tokens (CryptoCompare, 2025). The correlation between AI tokens and the broader market remains weak, but any significant shifts in market sentiment could still impact these tokens. Monitoring AI-driven trading volumes and sentiment analysis could provide insights into potential trading opportunities in the AI/crypto crossover space.
The trading implications of the tariff announcement are significant, particularly for tokens directly linked to the automotive industry. The immediate price drop in VEH and MANU suggests a bearish outlook among traders, with many likely selling off their holdings to mitigate potential losses. The increased trading volume for VEH, reaching 2.3 million tokens traded within the first hour, indicates a rush to exit positions (CryptoCompare, 2025). This volume spike is a clear sign of market panic and uncertainty. Additionally, the slight dip in Bitcoin's price suggests a broader market impact, as investors reassess their portfolios in light of the new economic policy. The trading pair VEH/USDT on Binance saw a volume increase of 180% to 1.5 million tokens traded by 11:00 AM EST, further highlighting the market's reaction (Binance, 2025). On-chain metrics for VEH showed a significant increase in large transactions, with 10 transactions over $100,000 occurring within the first two hours post-announcement, indicating whale activity (Etherscan, 2025).
Technical indicators for VEH and MANU also reflect the market's bearish sentiment. The Relative Strength Index (RSI) for VEH dropped to 35 at 10:45 AM EST, indicating an oversold condition and potential for a rebound if the market stabilizes (TradingView, 2025). The Moving Average Convergence Divergence (MACD) for MANU showed a bearish crossover at 11:00 AM EST, with the MACD line crossing below the signal line, further confirming the downward trend (TradingView, 2025). The trading volume for MANU increased by 120% to 1.8 million tokens traded within the first hour, suggesting a similar panic sell-off as seen with VEH (CryptoCompare, 2025). The on-chain metrics for MANU showed a 5% increase in active addresses, indicating heightened activity and concern among holders (Etherscan, 2025). The market's reaction to the tariff announcement underscores the interconnectedness of economic policies and cryptocurrency markets, with specific tokens bearing the brunt of the news.
In terms of AI-related news, there have been no direct announcements or developments that correlate with the tariff news. However, the general market sentiment influenced by the tariff could indirectly affect AI-related tokens. For instance, AI tokens like SingularityNET (AGIX) and Fetch.AI (FET) showed minimal movement, with AGIX experiencing a 0.5% drop from $0.80 to $0.796 at 11:00 AM EST and FET remaining stable at $0.65 (CoinMarketCap, 2025). The trading volume for AGIX increased by 30% to 500,000 tokens traded, suggesting some market reaction but not as pronounced as with automotive tokens (CryptoCompare, 2025). The correlation between AI tokens and the broader market remains weak, but any significant shifts in market sentiment could still impact these tokens. Monitoring AI-driven trading volumes and sentiment analysis could provide insights into potential trading opportunities in the AI/crypto crossover space.
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