Trump's tariff pledges rattle US, European auto shares

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Posted on 11/26/2024 10:09:22 AM PST by Responsibility2nd

LONDON, Nov 26 (Reuters) - Shares of U.S. and European automakers dropped on Tuesday after President-elect Donald Trump pledged steep tariffs on Canada, Mexico and China, threatening the industry's tightly knit supply chains and raising investor concerns of higher costs.

Trump said in a post on Truth Social he would impose a 25% tariff on all products from Mexico and Canada, and an additional 10% tariff on goods from China, on his first day in office in January.

Many automakers have built factories in Mexico to take advantage of relatively cheap labor and the country's proximity to the lucrative U.S. market, while China is a supplier of certain key components.

"If implemented, this (tariffs) would spell disaster for the U.S. auto industry and Detroit Three manufacturers, all of whom import significant numbers of vehicles from Canada and Mexico, as well as Volkswagen and other European OEMs," Bernstein analyst Daniel Roeska said in a note.

(Excerpt) Read more at reuters.com ...

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