Trump Is Said to Push for Early Reopening of North American Trade Deal
Published On Jan 21, 2025, 11:18 PM
President Trump plans to initiate renegotiations of the U.S.-Mexico-Canada Agreement (USMCA) earlier than the scheduled review in 2026. The focus will be on the auto sector, aiming to protect U.S. jobs and limit Chinese imports through Mexican factories. Trump has threatened a 25% tariff on goods from Canada and Mexico due to concerns over the flow of drugs and migrants, asserting that Mexico is violating prior trade agreements.
Stock Forecasts
F
Negative
The initiation of renegotiations and the potential tariffs could lead to increased volatility in the automotive industry, particularly for companies with operations in North America. Tariffs may increase production costs, affecting profitability and stock prices.
GM
Negative
Ford, which has a significant presence in both the U.S and Mexico, may face operational challenges and increased costs due to potential tariffs, making it a negative outlook for investors.
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