Detroit – President of the President Donald Trump threatens to proclaim the accident on the front of the home: American Auto Industry.
The President goes on 25% taxes on Canada and Mexican imports on TuesdayIt will divert more than $ 300 million each year in the US automotive trade with its two residents, which remove the supply chains that have operated decades and probably the price of new cars.
The fares “existential” form a threat to North American car production, said David fat, at the Institute of the Public Bakery of the Arroik University. “Everything imported from Mexico or Canada enters a car mounted in the US”
Kelley Blue Book says Trump’s tariff could raise US Price Average new car – already approaching about $ 49,000 $ 3,000 or more. The prices of some full-size collection trucks could shoot $ 10,000.
Economic pain would be increased by Canada and Mexico counterbalanced with rates In American exports.
“The economic impact of 25% of Canada and Mexico could be able to stop in a recession and US growth, ” Andrew foran wrote that 25% rates would promote 13.6% in Canada and 10.6% in the United States.
Since 1965, the US and Canada erased fares were eliminated with each other’s cars and car parts – North America has become an integrated powerhouse for car manufacturing. Mexico entered the fold of a trade covenant in the 1994 1994 region and Trump negotiated himself in 2020.
“You can use quite cheap canada steel, Mexican costs to assemble quite cheap cars, and North America is a very competitive place to build automobiles,” said Professor of Business School at Brett House Columbia University.
A large part of production has gone to Mexico. Ford, for example, manufactures Sonora Sonora Sonora Sonora and Maverick Sport Sonora. Stellantis has compasses from Toluca and Wagoneer west Mexico, west of Mexico City. Since 1968. General Motors turns GMC and Chevrolet collection in a central Mexican plant.
More than 8 million cars and light trucks imported last year from Mexico (1. No 3 million) and Canada (4.1 million). Canada and Mexico are two main foreign markets in US cars and light trucks, 53% of American car exports.
In order for Canadian and Mexican imports to taxes, most US duty is free, Trump would have an explosive manufacturing network that would have an explosive network.
When a White House Officer talked about the status of anonymity to discuss the details of the rate plan, taxes would apply taxes that cross the border from Mexico or Canada. This means that the costs were stacked from the United States factories to Mexico or Canada factories to accumulate. Red ribbon: “Administrative nightmare and bureauchratic to follow things,” the fat said.
Even 25% of Canada and Mexican fare wants to impose more taxes Foreign steel and aluminum starting on March 12. Trump is Removing metal rate exemptions He imposed within his first period – 25% in steel and 10% in aluminum – and rise to 25% in aluminum aluminum. This means that US importers, including car companies, will pay 50% in steel and aluminum in Mexico, large sources of metals.
“You are rising in each time (a part), and returns to a market,” said K. Venkeatesh Prasad, Vice-President of the Research Center at the Automotive Center.
Higher costs would take the toll. A decade ago, Prasad said: 20% of America consumers could not pay a new car. Already, he said: “40% of the population cannot afford a new vehicle.”
Ford CEO Jim Farley complained “What we see so far is a lot of costs and chaos.”
The engine of General Mary Barra said the GM “Several things we can plan and change the scenario.
Trump’s trading war is a rough time for automotive. They are trying to change the gasoline engine to electric vehicles, using the income generated by the usual cars, to finance EV investments, Prasad, therefore, can damage the rates to damage sales and change money for EV transition.
Trump stressed that Canadian imports and Mexican imports do not have trade; Are about slowing down the flow of documents Immigrants and Fentanyl during the US borders.
“We can’t fuck this to continue harming the US, so it will be put into effect on the fourth fourth of March.
Canada does not seem like Fentanyl’s source is particularly important. US customs agents fentanyl 43 pounds were hijacked last year at the Canadian border, at 21,100 kilo versus of Mexico.
Many analysts suspect that Trump has another goal: 2020 Negi-Mexico-Canada negotiated his first tenure to renew next year.
Although the president distinguished USMCA victories, it was a great improvement over the 1994 covenant, which could not reduce American trade deficits with Canada and Mexico. In fact, they have increased. (In the case of Canada, this is largely due to the exports of central Americans and Northeasterns.)
So it is likely to seek reviews, to ensure more production – specifically automatic production – that it is done in the United States, not only in North America. The rates can give Canada and Mexican pressure as the USMCA changes he wants to accept.
Meanwhile, TD economics ‘writes for the foran, “still the North American Auto Industry should prepare for long-term continuous trade in trade and potential trading.’ ‘
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Wiseman reported in Washington.
