TOKYO/MILAN — Shares of global automakers and suppliers tumbled on Friday after U.S. President Donald Trump threatened to impose tariffs on imports from Mexico, potentially upending a global manufacturing business model established decades ago.
In order not to pay Tariffs, if they start rising, companies will leave Mexico, which has taken 30% of our Auto Industry, and come back home to the USA. Mexico must take back their country from the drug lords and cartels. The Tariff is about stopping drugs as well as illegals! “This being escalated at a time when the China situation is not still resolved shows that Trump views tariffs as a weapon he can use without damage to the U.S. economy. That’s worrying and sends a bad signal for the outlook for global trade overall,” said Jon Harrison, a senior macro strategist at TS Lombard.
The American Automotive Policy Council, which represents U.S. automakers in Washington D.C., said new tariffs would ruin the benefits of Trump’s proposed new trade agreement with Mexico and Canada, which relies on duty-free access. The move also looks likely to backfire on U.S. consumers, driving up the prices of goods as varied as cars, refrigerators and television sets.
Swedish industrial seals and bearings maker SKF, which supplies carmakers in the United States from Mexico, said it would pass on any tariff impact to customers.
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