The automotive industry is bearing the brunt of trade-war crossfire again as U.S. President Donald Trump threatens to slap tariffs of as much as 25% on goods from Mexico, a key production hub for carmakers from Mazda Motor Corp. to General Motors Co.
Mexico is the largest source of U.S. vehicle and auto-parts imports, meaning tariffs would increase costs for virtually every major manufacturer. In late night tweets Thursday, Trump warned tariffs would start at 5% on June 10 and increase to 25% on Oct. 1 unless Mexico stops immigrants from entering the U.S. illegally.
A dozen of the world’s largest automakers — including Ford Motor Co., Toyota Motor Corp. and Volkswagen AG — lost about $18 billion in market value by the start of regular U.S. trading Friday. The Bloomberg World Auto Manufacturers Index slumped as much as 2.2% to the lowest intraday since July 2016.
Detroit automakers stand to lose billions of dollars under Trump’s new tariffs on Mexican goods. https://t.co/raIuD4hMg4
— The Detroit News (@detroitnews) May 31, 2019
JUST IN: Foreign automakers say U.S. tariffs on Mexican imports ‘threaten the jobs of tens of thousands of Americans here in the United States’ pic.twitter.com/PbQ4yrlDPy
— Reuters Top News (@Reuters) May 31, 2019
A dozen of the world’s largest automakers — including Ford Motor Co., Toyota Motor Corp. and Volkswagen AG — lost about $18 billion in market value by the start of regular U.S. trading Friday. via @business https://t.co/SzYtDJBpoY
— Lisa Scherzer (@lisascherzer) May 31, 2019
— Yahoo Finance (@YahooFinance) May 31, 2019