Shares of Asian Automakers Tumble as U.S. Announces Tariffs on Mexico
CNBC reports that shares of Asian automakers dropped on Friday after U.S. President Donald Trump announced fresh tariffs on Mexico. By the trading day’s end in Tokyo, shares of Nissan dropped 5.31 percent, while Toyota declined 2.85 percent and Mazda plunged 7.13 percent. Similar losses were seen over in South Korea, where Kia Motors saw its stock fall 4.49%. The moves came after Trump announced in a Twitter post on Thursday night stateside that the U.S. plans to impose a 5 percent tariff on all Mexican imports from June 10, until “the Illegal Immigration problem is remedied.” The White House added in a statement that the tariffs could be increased if the immigration issue continues. Mexico is used as a production base by many Japanese automakers. They manufacture vehicles such as cars and trucks in the North American nation for export, according to data from Mexico’s auto industry association AMIA. Read more here and see AIADA's statement below.
Auto Dealers React to President Trump's Mexican Tariff Threat
Cody Lusk, President and CEO of the American International Automobile Dealers Association (AIADA), which represents America’s 9,600 international nameplate franchises and their 578,000 employees, has released a statement in response to President Trump’s latest tariff threat:
“Imposing new tariffs on Mexico really means imposing a new tax on American consumers, raising prices on everything from produce to pick-up trucks. Tariffs on Mexican imports will result in self-inflicted damage that the U.S. auto industry, which supports 7.25 million American jobs, is not prepared to absorb.” Read more here.
U.S. Automakers Sweat Under Threat of Tariffs on Mexican Imports
President Trump’s threat to impose escalating tariffs on Mexican imports foists fresh bad news on the U.S. auto industry, which had pinned hopes on a tentative deal reached last year to preserve free trade between the countries. According to The Wall Street Journal, for Detroit’s Big Three auto executives, the prospect of tariffs on Mexican imports has been the most worrisome of the trade threats leveled by Mr. Trump during his presidency. Mexico-built cars accounted for 17 percent of Detroit auto makers’ overall U.S. sales in 2018, including some of the industry’s biggest moneymakers, large pickup trucks. The tariffs also would hit foreign car companies and automotive suppliers. Overall, the U.S. imported $52.6 billion of vehicles and $32.5 billion in auto parts last year from Mexico, the highest totals of any country, according to Commerce Department data. Mr. Trump on Thursday said the U.S. would implement a 5 percent tariff on all Mexican imports June 10 if the country doesn’t take steps to stem the flow of migrants over the U.S.-Mexico border. That tariff would rise gradually to 25 percent by October. Read more here.
White House Moves to Speed Vote on North American Trade Deal
The Trump administration on Thursday took a procedural action aimed at speeding up a vote in Congress on the new North American trade deal, but the move rankled House Speaker Nancy Pelosi, who has sought more time to review the pact, reports Reuters. U.S. Trade Representative Robert Lighthizer submitted a draft statement of administrative action to congressional leaders, which allows the White House to submit the text of the agreement to Congress after 30 days for a vote. Republicans, who control the U.S. Senate, have been seeking a vote on the new U.S.-Mexico-Canada Agreement (USMCA) before the August recess to avoid budget debates and 2020 presidential campaign activity expected to intensify in the autumn. But legislative time is running short as Democrats, led by Pelosi, seek improvements in the trade deal’s enforcement of new labor and environmental standards. Pelosi controls the schedule for trade legislation. Read more here.
Jaguar Land Rover Reveals Temperature-Changing Steering Wheel
Jaguar Land Rover said it has developed prototype "sensory steering wheel" technology in partnership with Glasgow University. Parts of the steering wheel heat and cool to indicate turns, lane changes and upcoming intersections, reports Automotive News. Alexandros Mouzakitis, JLR electrical research senior manager, said in a Wednesday news release that the temperature changes could be used for nonurgent notifications that don't require "a more intrusive audio or vibration-based cue," such as low fuel or navigational points of interest. The release said the temperature-based technology was also applied to self-driving vehicles' gear-shift paddles indicating when the transition from the driver to autonomous control is complete. Read more here.
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