USA. After Trump's announcement about tariffs, share prices of car manufacturers fell

“On January 20, as one of my many first executive orders, I will sign all necessary documents to impose a 25 percent tariff on Mexico and Canada on ALL products entering the United States through their ridiculous Open Borders,” the president wrote on Monday Donald Trump in a post on Truth Social. Trump added that the tariffs will remain in place until both countries begin to reduce drug supplies, particularly fentanyl, and the number of migrants illegally crossing the border into the United States.

Automakers in North America benefit from the Trilateral Free Trade Agreement between… Canada, USA and Mexico (CUSMA), thanks to which production takes advantage of the capabilities of factories in these three countries, including the duty-free transport of parts between the countries of the agreement. The introduction of customs duties will threaten the free movement of goods.

The share price of General Motors fell by 8.4 percent at 8 p.m. Polish time, Ford Motor – 2.1 percent, the share price of Toyota Motors on the American stock exchange lost 1.8 percent, the share price of Stellantis lost 5 percent, Volkswagen – 2 percent – summarized Reuters. Canadian parts manufacturer Magna International lost almost 5 percent in American quotations.

“If they are implemented (tariffs – ed.), this will spell disaster for the US auto sector and the three Detroit manufacturersall import significant supplies of cars from Canada and Mexico, as well as from Volkswagen and other European parts makers.” – wrote Bernstein analyst Daniel Roeska in a note to investors, quoted by Reuters. The agency quoted last week's statements from representatives of the automotive sector, who said, among others: about possible adjustments, such as price changes, in the case of customs duties. The Italian brokerage company Intermonte estimated that in the case of European Stellantis, each percentage point of tariffs had an impact on 1.4%. expected profits in 2025. One quarter of U.S. sales of cars manufactured by Stellantis come from sales in Mexico. Stellantis announced on Tuesday that it plans to close its 1,000-plus-employee Vauxhall factory in south Luton England.

One of the few exceptions when it comes to the automotive sector is Tesla stockwhich were in positive territory before the end of the session on American stock exchanges.

“These stocks have been rising since Trump won, while CEO Elon Musk spent a lot of time and money supporting the Trump campaign,” MarketWatch wrote, recalling that in March 2023, Musk told investors that “probably the most exciting The “herald of the day” was the announcement of the construction of a giant Tesla factory in Mexico. However, it is currently unknown what the future of these plans will be.

MarketWatch cited a Baird analysis that recalled that trade risks with Mexico were a major concern for the auto sector after the election, but Canada joining Mexico was an “unexpected development.”