Detroit/Washington.- American car manufacturers and their global rivals were shaken on Wednesday by the announcement of President Donald Trump that he will impose 25% tariffs to all foreign manufacturing vehicles and auto parts imported to the United States.
If the new levies remain in force during a prolonged period, they could increase in thousands of dollars the average cost of purchase of an American vehicle and hinder the production of cars in North America due to the interrelation between manufacturing operations developed by car manufacturers in Canada, Mexico and the United States during the last three decades.
Almost half of the cars sold in the United States last year were imported, according to the Globaldata research firm.
General Motors’ shares fell 8% in operations after the closure of the market. Those of Ford and those of Stellantis, Chrysler’s parent company, receded approximately 4.5% each.
In Asia, the shares of Toyota Motor, Motor Honda and Hyundai Motor fell between 3% and 4%.
Lee: 91% of automotive production in Mexico complies with Tmec: AMIA
The actions of Tesla, which manufactures in the US all cars sold in that market, but with some imported pieces, 1.3%fell.
Trump said the tariffs announced on Wednesday could be neutral in net or even beneficial terms for Tesla. He added that the company’s executive director and his nearby ally, Elon Musk, did not advise him on cars tariffs. Musk, in an X publication after the news, said that tariffs will also affect Tesla.
The companies did not respond immediately the emails requesting comments.
Trump’s tariffs and their threats to impose them have sown uncertainty in companies and have affected global markets since their return to the White House in January.
On Wednesday, Trump reiterated that he expects cars to drive manufacturers to invest more and more in the United States instead of Canada or Mexico.
‘Tariffs will make the production and sale of cars in the US’
Cars Drive America, a group that represents the main manufacturers of foreign cars, including Honda, Hyundai, Toyota and Volkswagen, said that “Tariffs imposed today will make the production and sale of cars in the United States, which will ultimately lead to higher prices, less options for consumers and less jobs in the manufacturing industry in the United States.”
North America car manufacturers have largely enjoyed a free trade status since 1994. The agreement between the United States, Mexico and Canada (TMEC) of 2020 signed by Trump imposed new rules designed to increase the production of regional content.
After starting 25% tariffs on Mexico and Canada in early March, Trump allowed a month extension for vehicles produced in accordance with the terms of the TMEC, which benefited US companies. The new rules do not expand that extension.
Lee: Autartes that meet the TMEC will not be subject to tariffs, for now
“Companies that have invested hundreds of millions and billions of dollars in plants in Canada and Mexico will probably see their profits drastically reduced in the next quarters, if not in a couple of years,” said Sam Fiorani, an autoforecast solution analyst.
“We will consider adjusting our sales and production forecasts because this will cause total chaos,” he added.
The White House said that 25% tariffs on cars imported to EU will begin no later than May 3, taxing key car parts, including engines, transmissions, propulsion system parts and electrical components.
Automobile importers under the TMEC will be given the opportunity to certify their American content so that only their non -American content is serious, said the White House.
Cox Automotive, a supplier of automotive services, predicted before the announcement of the new tariff that would be added $ 3,000 to the cost of a vehicle manufactured in the United States and 6,000 to a vehicle manufactured in Canada or Mexico without exemptions.
If tariffs are approved, Cox hopes that in mid -April interruptions in “practically” vehicles in North America will occur, which will result in 20,000 vehicles less produced per day, or an impact of approximately 30% on production.
Lee: What do Trump’s 25% tariffs contain to car imports?
The United autoker union, which represents the workers of the three large automotive companies of Detroit, praised Trump’s action.
“With these tariffs, thousands of well -paid jobs in the automotive industry could return to working class communities throughout the United States in a matter of months, simply adding additional shifts or lines in several underutilized automotive plants,” said the president of the UAW, Shawn Fain, in a statement.
With Reuters information
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