Employees work on the assembly line in new power vehicles at the Chinese EvMotor Operating Factory on April 1, 2024 in Jinhua, China’s China Province.
Shi Kawanaj VCG | China Visual Group Gety pictures
The shares of Auto Giants fell sharply on Monday, after US President Donald Trump imposed a long tariff threatened on goods from Canada, Mexico and China, which raised concerns about the possibility of a global trade war.
Trump signed executive orders on Saturday on the implementation of a 25 % tariff on Mexican goods and most Canadian goods, with a 10 % duty imposed on Canadian energy products and Chinese goods, which are scheduled to enter into force from Tuesday.
The US President warned that the Americans might feel “some pain” when the measures come into effect, however He said The customs duties were necessary “because of the main threat to illegal foreigners and the deadly drugs that kill our citizens, including fentanel.”
Canada and Mexico retreated, and threatened to impose reprisal measures that included definitions.
The shares of global auto manufacturers fell on the news.
Analysts expect that Trump messages will have a profound impact on the auto industry, noting the strong dependence on manufacturing operations throughout North America, especially in Mexico, and complex global supply chains.
The Japanese car giants, Toyota and Nissan, fell more than 5 % on Monday, while the local Honda competition fell by 7.2 %. Mazda Motor Corp shares listed in Japan were traded by more than 7.5 %, while Kia Motor Corp decreased nearly 7 %.
In Europe, the shares of the French auto parts resource Valeo and Renault decreased by 8.3 % and 4 %, respectively, during deals in the early morning.
Meanwhile, BMW was seen in Germany, Volkswagen and Porsche, about 5 %.
Trump has Proposal The European Union can be next to the customs tariff.
For Germany, the probability of customs tariffs on European cars comes at a time when the best manufacturers of original equipment, or original equipment manufacturers, are already reel.
Volkswagen and the Mercedes -Benz and BMW group have all issued profit warnings in recent months, noting the weak economy and slow demand in China, the world’s largest car market.
This developing story is updated.
