Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Volkswagen warns of ‘harmful’ consequences from Trump’s Mexico tariffs

by January 21, 2025
January 21, 2025
Volkswagen warns of ‘harmful’ consequences from Trump’s Mexico tariffs

Volkswagen has cautioned that the US administration’s proposed tariffs on imports from Mexico could have a “harmful economic impact” on both American consumers and the global automotive industry.

It comes after President Donald Trump indicated this week that he intends to impose tariffs as high as 25 per cent on vehicles from Mexico and Canada by 1 February, citing concerns over migration.

Volkswagen operates a large plant in Puebla, Mexico — its biggest site outside Europe — which built nearly 350,000 vehicles in 2023, primarily for export to the United States. The German carmaker criticised the mooted protectionist move, saying:

“The Volkswagen Group is concerned about the harmful economic impact that proposed tariffs by the US administration will have on American consumers and the international automotive industry. We remain a strong advocate for free and fair trade.”

The company has invested more than $10 billion in the US market, maintaining that “open markets have been a driving force behind global economic growth and prosperity”. Analysts at Stifel previously warned that around 65 per cent of Volkswagen’s US sales are made up of cars produced in Mexico, suggesting that if new tariffs are enforced, the brand could become uncompetitive and even withdraw from the American market altogether.

Volkswagen shares eased by €0.50, or 0.5 per cent, to €96.35, while its rival Stellantis slipped €0.17, or 1.3 per cent, to €12.68. Stellantis, which imports nearly 40 per cent of its US-sold vehicles from Mexico and Canada, has expressed support for boosting US-based manufacturing. The group’s chairman, John Elkann, reportedly spent four days meeting Trump and senior officials in the new administration earlier this month.

The potential introduction of tariffs threatens to disrupt the US-Mexico-Canada trade agreement (USMCA), the successor to the North American Free Trade Agreement (Nafta). Both Canada and Mexico have vowed to retaliate with counter-tariffs if Trump goes ahead with his plan, creating the prospect of a new trade war. The Canadian dollar and Mexican peso each weakened against the US dollar by mid-morning on the news, falling 0.9 per cent and 1.2 per cent respectively.

Read more:
Volkswagen warns of ‘harmful’ consequences from Trump’s Mexico tariffs

0
FacebookTwitterGoogle +Pinterest
previous post
Pocket money toys see sales surge as parents and ‘kidults’ hunt for cheaper fun
next post
Treasury intervenes in car finance row as billions in compensation hang in the balance

You may also like

Bank of England warns of growing financial risks...

December 2, 2024

Nick Clegg leaves Meta as Joel Kaplan takes...

January 3, 2025

Become A Pro At Investing: Strategies To Upgrade...

March 6, 2023

Cap on bankers’ bonuses to be scrapped within...

October 24, 2023

Why Data Driven Decision Making is More Important...

September 9, 2022

Hybrid Work Trends 2023

November 25, 2022

Labour warned more industries could need British steel-style...

April 14, 2025

Buy-now pay-later complaints jump as shoppers rely on...

February 20, 2023

50% of women say they would not consider...

April 25, 2023

Labour’s Tax Policy on Private Schools to Drive...

June 10, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025
    • House witness flips script on Dem who ambushed him during hearing with unearthed tweet: ‘Iceberg is ahead’

      June 7, 2025
    • Call with China’s Xi, and Trump-Musk exchange fueled barbs during 20th week in office

      June 7, 2025
    • Trump’s conservative allies warn Congress faces critical ‘test’ with $9.4B spending cut proposal

      June 7, 2025
    • Tech ETFs are Leading Since April, but Another Group is Leading YTD

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,567)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved