Employees work on the assembly line of new energy vehicles at a factory of Chinese EV Startup leopy on 1 April 2024 in Chinese EV Startup leapmotor on 1 April 2024.
Shi Kuanbing | VCG | View China Group | Getty images
Auto veterans shares fall rapidly on Monday after US President Donald Trump Imprisonment Long -threatened tariffs on goods from Canada, Mexico and China.
Trump on Saturday signed executive orders to implement 25% tariffs on Mexican and most Canadian goods, while imposed 10% duty on Canadian energy products and Chinese goods, which are scheduled to be effective from Tuesday.
The US President warned that Americans may feel some pain when measures apply, but Said Tariffs were required “Including illegal aliens and the major threat of deadly drugs, including fantanel, who killed our citizens.”
Canada and Mexico have hit back, threatening to implement retaliation containing tariffs.
Shares of Global Autometers affected the impact of a possible trade war as investors.
Japanese auto giants Toyota And Nissan Both fell over 5% on Monday, while domestic rival Honda 7.2%tumblled. Japan list Mazda Motor Corp Tradeed over 7.5%, while Kia Motor Corp fell nearly 6%.
In Europe, French car parts supplier shares Velio And French-Italian Group Descendant 7.8% and 7.6% fell respectively.
Germany Voxwagen 6.8% slipped during morning deals, while domestic peers Porsche And BMW Both of them traded more than 4%.
Analysts expect Trump’s tariff has a profound impact on the global motor vehicle industry, which cite heavy dependence on manufacturing operations in North America, especially in Mexico, and complex supply chains.
Europe in line for tariffs further?
Trump has suggested The European Union may be next to the tariff, telling reporters that additional duties on the block can be “very soon”.
For its part, 27-nation is in blocks Mortgage To respond to any American duties in a proportional way.
The US-EU motor vehicle business has traditionally been a main pillar of the success of the European motor vehicle industry.
Tariff on motor vehicle imports from the European Union will probably increase the cost of European cars in the US market, according to A Analysis From Oxford Economics. This step will also result in severe contraction of auto exports of the European Union in the American market.
For Germany, Europe’s largest economy, the possibility of American tariff on European auto comes at a time when it is the top original equipment manufacturer (OEM) Already reeling,
Volkswagen, Mercedes-Benz Group And BMW has issued all the benefits warnings in recent months, citing economic weakness and sluggish demand in China, the world’s largest car market.
A man sits from the Volkswagen Factory in Wolfsburg, Germany on 28 October 2024.
Scene Gallup | Getty Image News | Getty images
Volkswagen said on Monday that it is currently assessing the possible impacts of American tariffs on both the company and the comprehensive motor vehicle industry.
“At the same time, we continue to promote open markets and stable trade relations. These are required for a competitive economy and especially the motor vehicle industry,” the automaker said in a statement.
He said, “We are relying on creative interaction between business partners to ensure planning safety and economic stability and to avoid business conflicts,” he said.
A BMW spokesperson described free trade as one of the most important drivers of development and progress, “given that” Tariff, on the other hand, obstructs free trade, slowing down innovation, And set up a negative spiral in speed.
