WINNING: Car Stocks Crater $18B Because Trump

Bloomberg reports:

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.