Employees work on a prefabricated line of new energy vehicles at the Chinese launch factory EV Leapmotor on April 1, 2024 in Jinhua, Zhejiang Province in China.
Shi kuanbing | Vcg | Visual China Group | Getty Images
Auto Giants’ shares suddenly fell on Monday, after US President Donald Trump imposed Long threatening tariffs on goods from Canada, Mexico and China.
On Saturday, Trump signed executive commands for implementing 25% of tariffs on Mexican and most of Canadian goods, at the same time imposing 10% duties to Canadian energy products and Chinese goods, which should take effect from Tuesdays.
US President warned that Americans could feel “some pain” when they measure it into force but said The tariffs were needed “because of the great threat of illegal foreigners and deadly drugs by killing our citizens, including Fentanil.”
Canada and Mexico replied, threatening to impose retaliation by the measures involved in the tariffs.
The shares of global car manufacturers sank while investors interfered with the influence of a potential trade war.
Japanese car giants Toyota and Nissan Both of them fell more than 5%on Monday, while the domestic rival Honda 7.2%collapsed. Shares on the list of Japan Mazda engine corp Trading more than 7.5% lower, while the Kia Motor Corp fell almost 6%.
In Europe stocks of a French parts of car Valeo and the French-Italian conglomerate Stellantis It dropped 7.8%and 7.6%.
German Volkswagen During the morning offers, he slid 6.8%, while the domestic peers Porsche and BMW They both traded for more than 4%.
Analyst expect Trump’s tariffs have a deep impact on the global automotive industry, citing a large reliance on production operations across North America, especially in Mexico, and complex supply chains.
Europe is the following in line for tariffs?
Trump has proposed The European Union may face tariffs, telling reporters that additional duties in the block can be imposed “pretty fast”.
On its part, a 27-international block has pledged react to any US duty in a proportional manner.
The US-EU car store was traditionally a fundamental pillar of the success of the European automotive industry.
EU motor -imported tariffs would probably increase European cars costs in the US market, states analysis from Oxford Economics. The step is also likely to result in a sharp contraction of exports to the EU automatic automaton to a critically important US market.
For Germany, Europe’s largest economy, the appearance of American tariffs on European cars comes at a time when top manufacturers are original equipment (OEMS) But winding.
Volkswagen, Mercedes-Benz Group And in recent months, BMW has released profit warnings, citing economic weakness and controversial demand in China, the world’s largest car market.
The man sits across from the Volkswagen factory on October 28, 2024. In Wolfsburg, Germany.
Sean Gallup | News about Getty Images | Getty Images
Volkswagen said on Monday that he is currently evaluating the potential effects of US tariffs both on the company and the wider automotive industry.
“At the same time, we continue to promote open markets and stable trade relations. They are key to competitive economics and especially for the automotive industry,” the car manufacturer said in a statement.
“We are counting on constructive conversations between commercial partners to ensure planning safety and economic stability and avoiding trade conflict,” they added.
BMW spokesman described the free trade as “one of the most important growers of growth and progress”, noticing that “tariffs, on the other hand, interfere with free trade, slow innovations and set a negative spiral on the move. In the end, they are damage to customers, making produce more expensive and less innovative. “