Trump's import tariff plan will disrupt the global automotive industry supply chain and cause far-reaching negative impact
On June 25, local time, Moody's Investors Service stated in a report to customers that the import tariffs on vehicles proposed by the United States will have a profound negative impact on the entire automotive industry. And said that higher tariffs will trigger global automotive industry supply chain issues.
Last week, US President Donald Trump threatened to impose a 20% tariff on cars imported from the EU. And in Twitter said in a statement: "If you do not quickly break and eliminate tariffs and barriers, we will impose a 20% tariff on all European cars entering the United States. All in the United States to build a factory!" The tariff plan will be in July Effective on the 6th, as part of it, the U.S. government also imposes a 25% tariff on Chinese goods, including automobiles.
According to the company, “The imposition of a 25% tariff on imported vehicles and parts will have a negative impact on almost every segment of the automotive industry, such as vehicle manufacturers, parts suppliers, vehicle dealers, and transportation companies. If any duties are levied, automakers will incur additional costs in order to ensure sales, which will hurt profitability. If prices are increased and consumers are subject to tariff costs, they will affect sales, or at the same time damage profits."
Moody's stated that American automakers cannot remove the impact of import tariffs. And pointed out that both GM and Ford rely on the import of vehicles from Mexico and Canada.
According to the report, "The tariff will have a negative impact on Ford and GM. For GM, the burden will be even greater because the company relies more on importing vehicles from Mexico and Canada to support US operations. In addition, GM's Profitability A large proportion of trucks and SUVs come from Mexico and Canada, and the two automakers will have to bear the costs if they reduce the production capacity in Mexico and Canada and transfer some of the vehicles back to the United States.
However, GM had previously stated that although President Donald Trump of the United States has criticized car manufacturers for producing vehicles abroad, the company still plans to produce the new Chevrolet Blazer in the United States. He said he will continue to work with the U.S. government to develop a modern North American free trade agreement.
Trump's trade policy has prompted companies to change their production plans. On June 25, local time, the American motorcycle manufacturer Harley-Davidson shares plunged. Prior to that, the company had said that it began to transfer part of its production overseas to offset the EU's retaliatory tariffs on certain US products. influences.
400Mm Width Wall Panels,Wood Veneer Panel,Water Protection Panel,Width Pvc Wall Panel
Puyang Shangyi Decoration Material Co., Ltd. , https://www.pysydecoration.com