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Carmakers See $17 Billion Wiped Out by Trump’s Mexico Threat

  • World auto manufacturers index falls to lowest since July 2016
  • 25% tariffs would ‘cripple’ the industry, Deutsche Bank says
Bloomberg business news
Michael Antonelli, market strategist at Baird PWM, talks about how tariffs could impact the auto industry.Daybreak: Americas." (Source: Bloomberg)
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The automotive industry is bearing the brunt of trade-war crossfire again as U.S. President Donald Trump threatens to slap tariffs of as much as 25% on goods from Mexico, a key production hub for carmakers from Mazda Motor Corp. to General Motors Co.

Mexico is the largest source of U.S. vehicle and auto-parts imports, meaning tariffs would increase costs for virtually every major manufacturer. In late night tweets Thursday, Trump warned tariffs would start at 5% on June 10 and increase to 25% on Oct. 1 unless Mexico stops immigrants from entering the U.S. illegally.