A transport trailer transports Toyota vehicles and lines up at border customs inspection to enter the United States at the Otay border crossing in Tijuana, Mexico, May 31, 2019.
Jorge Duenes | Reuters
DETROIT – Automaker Stocks General Motors and star Stocks fell Tuesday morning after President-elect Trump threatened to impose 25% tariffs on goods imported into the United States from Canada and Mexico.
Since NAFTA came into effect in 1994, the auto industry has used these countries, especially Mexico, to reduce vehicle production costs. Nearly every major automaker operating in the United States has plants in Mexico, with General Motors and Stellantis building full-size pickup trucks there.
General Motors and Chrysler parent Stellantis, which has four major plants in the two countries, both saw their shares fall more than 4% on Tuesday. shares ford cars, Among them, the exposure in the country is lower, which dropped by nearly 2%. shares Toyota Motor, honda cars Output at other Mexican factories also fell by at least 1%.
Trump announced his intention to impose a 25% tariff on all U.S. imports from Canada and Mexico through an executive order when he takes office on January 20. % tariff.
Such tariffs would be more aggressive than Trump’s anticipated plan to renegotiate the United States-Mexico-Canada Agreement, which he discussed during his first term to replace the North American Free Trade Agreement. The move would end regional free trade agreements.
Both Trump and Democrats have said they believe the trade deal needs to be revised to address potential plans by Chinese manufacturers such as BYD.
Trump made multiple tariff proposals during the campaign, including calls for More than 200% Duties or taxes imposed on vehicles imported from Mexico. He also threatened to raise tariffs on European cars, as he did during his first term.
This is developing news. Please check back for additional updates.
About The Author
