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 percent 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 percent on June 10 and increase to 25 percent on Oct. 1 unless Mexico stops immigrants from entering the U.S. illegally.
The world's largest automakers — including Ford Motor Co., Toyota Motor Corp. and Volkswagen AG — lost $17 billion in market value in Friday trading. The Bloomberg World Auto Manufacturers Index slumped as much as 2.2 percent and ended the week at the lowest since July 2016.
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