By Medha Singh and Kanchana Chakravarty
(Reuters) -Differences from American companies were under pressure after the last escalation in the trade war of Washington, with new rates in Canada and Mexico expected to make the profit in various sectors, including cars, space travel, retail and housing.
Economically sensitive shares such as airlines and banks led to the most important indexes of Wall Street on the new rates on Tuesday. On Monday, the Benchmark S&P 500 suffered on the worst day of this year after the American rates were confirmed. [.N]
US President Donald Trump imposed 25% rates for import from Mexico and Canada, with effect from Tuesday. The promotion covers more than $ 900 billion in annual American import from the two countries.
Trump also doubled the tasks on Chinese import to 20% to punish Beijing about the American Fentanyl -overdosis crisis. The cumulative duty is at the top of a maximum of 25% rates that are imposed during its first term.
The Canadian Prime Minister Justin Trudeau, who, only a few hours after the American rates were in force, appealed, immediately announced 25% rates on C $ 30 billion ($ 20.66 billion) of American import, with the potential to focus an extra C $ 125 billion in 21 days in 21 days.
China also responded with extra rates of 10% -15% to certain American import from 10 March, while Mexico is ready to quickly take revenge on his long -term ally.
Auto
Shares of American car manufacturers Ford and GM lost 1.9% and 1.6% on Tuesday, because the sector is strongly exposed to rates due to the integrated nature of automatic production between the three North American countries.
S&P Global estimates The new tasks on the import from Mexico and Canada could cost the affected car manufacturers on average 10% -25% of their annual EBITDA.
Trump’s 25% rates on imported steel and aluminum would also increase the costs for the industry, which in 2024 were 15% of the net shipments of iron and steel, S&P Global said in a note.
JP Morgan analysts also expect car manufacturers to be the victims of direct costs of rates in Canada and Mexico, with some pain shared with suppliers, dealers and consumers.
This can cost general engines around $ 14 billion (or almost all income before interest and taxes that it led this year) and Ford around $ 6 billion (or ~ 75% of the EBIT that it led this year), they said.
Ford has three plants in Mexico. It exported just under 196,000 cars to North America in the first half of 2024, by 90% to the US, according to Amia van Mexico.
Stellantis make 39% of his North -American vehicles in Mexico or Canada, while General Motors and Ford Motor make 36% and 18% respectively, according to a November report from Barclays.