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Shares in American, European and Asian car manufacturers collapsed on Monday after the caring tariffs of US President Donald Trump on Canada and Mexico threatened to disrupt the supply chain to which the industry relies on the US market.
Analysts have warned that the 25 -firm tariff will be with the face of Canadian and Mexican imports with a face from Tuesdays from Tuesday car industry With an additional $ 43 billion costs just as it struggles with a heavy transition to electric vehicles.
The industry is expected to be one of those most severely hit by tariffs, and cars make up 31 percent of the US import values from Mexico and 14 percent of Canada, according to Barclays.
In the past four decades, many manufacturers have established major operations in Canada and Mexico to help supply USA, one of the most important markets in the industry.
Tariffs to the gross value of vehicles and parts of $ 172 billion imported from Canada and Mexico in the US 2023 would add $ 43 billion in additional costs, or $ 2,700 with an average vehicle sold in the United States, according to Jefferies Philippe Houchois analyst.
General Motoros’s shares have fallen 7.5 percent in the store before the market and Ford fell 4 percent. Two companies are among the most exposed to the amount of parts and vehicles exporting to the US from Canada and Mexico, according to Bernstein analysts.
In Europe, there are shares in Volkswagen, Stellantis and BMW in between 4 and 6 percent, which followed the earlier drop of Japanese car manufacturers.
“If full tariff influence only carried oems [original equipment manufacturers]This would practically delete the net income of Ford, GM -ai Stellantis, “said Bernstein analyst Daniel Roeska.
In the sign that the tariffs shake the industry, shares in suppliers of car manufacturers fell, and Paris fell 8 and 10 percent on the Valeo and Forvia list.
Earlier in Tokyo, Toyota, Honda and Nissan fell about 5 percent. Toyota and Honda have large factories in Canada, while the blow to Nissan’s plants in Mexico is difficult to be timed because he is trying to make an emergency plan to stop the training of money.
Mazda shares closed 7.5 percent, the fierce decline in Japanese groups. The company relies on cars exported from Mexico to a third of US sales, according to Macquarie analysis.
Car manufacturers are expected to take steps to alleviate a shot from the tariff, including getting more parts from the USA -a potential switching of capacity from Mexico and Canada.
However, analysts warned that these measures would have a limited impact and that prices would ultimately increase. Bernstein also expects a smaller sale of models to be introduced to the US from Mexico and Canada.
