Mexico warns Trump tariffs would kill 400,000 US jobs, threatens retaliation
Published On Nov 27, 2024, 12:46 PM
Mexican President Claudia Sheinbaum has warned that if U.S. President-elect Donald Trump implements a proposed 25% tariff, it could result in the loss of 400,000 jobs in the U.S. This tariff could also trigger retaliatory measures from Mexico, raising their tariffs and impacting the automotive sector, particularly companies like Ford, General Motors, and Stellantis. Analysts predict that the tariffs could obliterate profits for major automakers and increase vehicle prices for consumers. The potential for a trade war raises concerns over regional economic stability and employment in both countries.
Stock Forecasts
F
Negative
The proposed tariffs threaten to disrupt trade flows, especially in the automotive sector, leading to significant financial strain on companies dependent on cross-border trade. Major U.S. automakers could see sharp declines in profitability and increased retail prices, which may dissuade consumers.
GM
Negative
Investors should be cautious about exposure to the automotive sector, particularly in stocks like Ford. The competitive landscape will be negatively impacted by tariffs, leading to lower sales and market share.
XLI
Negative
Due to the expected backlash and retaliatory responses, the economic implications could lead to increased volatility in stocks linked to international trade and manufacturing.
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