Tariff-exposed stocks feel the squeeze as trade war heats up
By MEDHA SINGH AND KANCHANA CHAKRAVARTY
(Reuters) is under pressure from US companies after the latest escalation of Washington, the new tariffs for Canada and Mexico expected to pay in several areas of earnings, including cars, aerospace, retail and apartment.
Economically sensitive reserves, such as airlines and banks, decrease the main indicators of Wall Street on Tuesday at new tariffs. On Monday, the S & P 500 was affected by its worst day of this year after the US tariffs were approved. [.N]
On Tuesday, US President Donald Trump gave 25% tariffs for imports from Mexico and Canada on Tuesday. The action includes more than $ 900 billion worth of importance from two countries.
Trump also doubled Chinese import responsibilities to 20% to punish Beijing over the US fentive excess crisis. The accumulative debt comes up at the top of the tariffs set at 25% in its first term.
Talking to the Prime Minister of Canada Justin Truden, only hours after US tariffs entry into force of $ 30 billion ($ 20.66 billion), if necessary, to target $ 125 billion if necessary.
China also responded to a certain amount of 10% -15% of the US imports on March 10, and Mexico is ready to quickly retaliate against its long-term allies.
Cars
US car Ford and GM lost 1.9% and 1.6% on Tuesday, as the sphere is heavily due to tariffs due to the integrated nature of car production between the three countries of North America.
S & P Global estimates that new imports from Mexico and Canada can be worthwhile to influence US fighters, 10% -25% per annum.
The 25% of Trump’s tariff on imported steel and aluminum will also increase industry costs, which are calculated on 15% of the net deliveries of iron and steel, S & P Global notes.
JP Morgan analysts also expect the cars to have the rough costs of direct costs from Canada and Mexico tariffs, some pain will be provided with suppliers, dealers and consumers.
This can spend about $ 14 billion (or significantly all earnings before this year) and this year before the guide is about $ 6 billion), they say.
Ford has three plants in Mexico. In the first half of 2024, it exported to North America to North America, and 90% go to the United States according to Amia of Mexico.
Stellantis is 39% of its North American vehicles in Mexico or Canada, while General Motors and Ford Motor make up 36%, and 18% according to the November of the BARCLAYS.
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