Companies started with storage materials, reviewing the production traces and preparing to raise prices because Donald Trump’s trade war entered the “Unedited Territory” with large tariffs in Canada, Mexico and China.
Sectors, including production, retail and food, were among those who highlighted shocks for their supply chains after the US president imposed 25 percent of duties on imports from his two North American neighbors and raised new cinema tariffs to 20 percent. Canada and China also announced quickly retribution which US groups warned can harm sales and jobs.
Car manufacturers, who are already fighting with outstretched margins and large investments in electric vehicles, are expected to hit the war war that spreads the most severely due to their complex international supply chains.
German car supplier Continental said he would review his production capacity on Tuesday in Mexico and Canada, because his shares slid 12 percent in Frankfurt on Tuesday because of concern about that tariff Influence.
Continental employs more than 23,000 people in Mexico, an important production center for cars. He announced an investment in the amount of $ 90 million to build 22. Plants in the country just a year ago.
Forvia Forvia Forvia also warned of the “huge” impact on the industry. The company has extensive production operations in Mexico.
GroupWith customers, including Stellantis, Tesla and Chinese ByD, they estimated that the impositions could increase annual costs by € 200 million € 450 million. The data originates in detail about internal discussions received by the Financial Times, and the company confirmed on Tuesday.
“Putting 25 percent on significant streams of buying the sum of the industry automatically has a very significant impact,” said Olivier Durand, the Forwaa Financial Director in an interview.
Bernstein estimated an annual goal of up to $ 40 billion in the US car sector if trade flow remains unchanged-which would turn an average additional cost of $ 1,200 per US vehicle. More than $ 13 billion in car cash flows would probably be deleted for General Motors, Ford and Chrysler -the owner of Stellantis in the fiscal year 2026. If the tariffs remain in place, the company said.
Boeing shares fell 6.6 percent on Tuesday. The plants of the aircraft manufacturers are in the US, but the supply chain extends throughout North America. Analyst Jefferies Sheila Kahyaoglu estimated that the company was spending $ 1 billion a year on its Mexican supply chain, and the Winnipeg factory, Canada, makes parts for 787.
American traders also warned that they were stating more prices for consumers.
The goal of a retail chain a largely warned of Profit pressures Partially related to tariffs on Tuesday. Executive director Brian Cornell admitted that some objects could become more expensive, with the prices of fresh fruits and vegetables from Mexico ready to escalate quickly. Only half of the company products were made in the US.
Rick Gomez, Certain Commercial Director Target, said his traders would have to be careful in prices, not going through higher expenses. As an example, he said that Target could freeze the price of Christmas decorations for $ 3, “so we may take a bit of socks on socks to cover where we are in Christmas decorations.”
Corie Barry, Best Buy Executive, said on Tuesday that China and Mexico remained the largest and second largest sources for the consumer electronics she had sold. “We expect that our suppliers will transfer to a certain level of tariff costs throughout our range, which increases prices for US consumers,” Barry said analysts.
Industry experts warn that the greatest uncertainty is how long these measures will be introduced and if exemptions will be introduced to alleviate the impact on them.
“This administration believes that tariffs are important in itself,” said Tim Brightbill, a partner at the lawyer’s company Wiley Rein and an international trade expert.
The American stock of Platinum, raw materials in the production of car products to jewelry, jumped to the highest level since 2021, as customers were collecting it in front of the tariff, growing five times since December.
On Tuesday there was a wide sale in mining supplies, and the Uranian companies-from which they took out the metal in Canada-Takodjer overnight. Uranus is a critical element in the development of nuclear fuel.
The US trade groups also said they were concerned that Canadian stores would take American spirits off her shelves and estimated that Tariffs against Mexico and Canada could lose more than 31,000 jobs. Ghosts are among the first category that hit the retaliation Tuesday that Canada announced, along with a widespread consumption such as food, clothing and cosmetics, as well as electronics of such home devices.
Many tariff retaliation target US agricultural exports. China will impose a 15 -long tariff on American chicken, wheat, corn and cotton, and 10 percent on cheeses, soybeans, pork and beef. Canada has charged for American imported cereals, meat and dairy products.
Reporting Ian Johnston in Paris, Patricia Nilsson in Frankfurt, Kana Inagaki, Camilla Hodgson and Madeleine Speed in London, Gregory Meyer and Guy Chazan in New York and Claire Bushey in Chicago
