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, causing concern about the possibility of a global trade war.
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 have fallen to the news.
Analyst expect Trump’s tariffs that have a deep impact on the automotive industry, citing a large reliance on production operations across North America, especially in Mexico, and complex global supply chains.
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 7%.
In Europe stocks of a French parts of car Valeo And a car manufacturer Renault It dropped 8.3%and 4%, respectively, during the early morning offers.
Meanwhile, Germany BMW,, Volkswagen and Porsche They were all seen trading by about 5%.
Trump has proposed The European Union could be next to the tariff.
For Germany, the prospects of American tariffs are on European cars at a time when top manufacturers are original equipment or 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.
This development story is updated.
