The 25%storm .. Trump’s decisions shake the auto industry globally

President Donald Trump’s declaration rocked the imposition of customs duties by 25 percent on all imports of car and spare parts to the United States companies in the American auto industry sector and its global competitors.

General Motors shares decreased eight percent in trading after the market closed. Ford and Westelants shares listed in the American market fell by about 4.5 percent each. In Asia, the shares of Toyota Motor, Honda Motor and Hyundai Motor decreased by about three percent.

Tesla shares, which make all cars sold in the United States locally, but import with ingredients, decreased 1.3 percent.

Trump said that the customs duties announced on Wednesday may negatively affect Tesla or perhaps help them. He added that the CEO of the company and his close ally, Elon Musk, did not give him any advice on customs duties on cars.

This step is expected to collect taxes worth $ 100 billion, as the White House indicates that it will support the local industry, but it may pressure the car makers who depend financially on global supply chains.

“This will enhance growth, we will impose a 25 percent fee.” Trump told reporters.

None of these companies have yet to respond to emails to request a comment.

Data from the research company, Global Data, indicates that nearly half of the cars sold in the United States last year were imported.

“The customs duties imposed today will increase the cost of producing and selling cars in the United States, which will eventually lead to high prices, reduce the options available to consumers, and decline in the manufacturing sector jobs in the United States,” said Auto Drive America, which is the largest foreign auto manufacturer such as Honda, Hyundai, Toyota and Volkswagen.

Trump’s customs duties and threats associated with their imposition have caused their second term in a state of fog for companies, and sparked disturbance in the global markets. On Wednesday, he emphasized that these customs duties are expected to pay car manufacturers to increase their investments in the United States instead of Canada or Mexico.

North America’s auto companies have enjoyed a large -scale business since 1994. The 2020 agreement between the United States, Mexico and Canada has been set by Trump new bases aimed at increasing the production of components in the region.

After imposing 25 percent customs duties on Mexico and Canada in early March, Trump granted a month for cars produced according to the terms of the agreement, which had a positive impact on American companies.

However, the new rules do not involve the extension of this deadline.