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The Automotive World is in a slight flow as newly appointed United States President Donald Trump has started his term with an uneven threat to put or increase tariffs on several products including automobiles in the White House. To increase American manufacturing, Trump has warned of trade wars with Canada and Mexico that may potentially face collateral damage to European car manufacturers. China, the world’s largest motor vehicle market, may also have some effects.
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Apply or increase tariffs on many global regions, including dual edge, to increase tariffs on products coming from Canada and Mexico, is a matter of concern for European automobile manufacturers. Many of these manufacturers have production base in Canada and Mexico, and will be forced to move features to the United States. For units imported from the European Union in the US, a potential tariff growth will make these more expensive.
Do you know that about 90 percent of cars manufactured in Mexico are exported and a large part of these exports makes way for the northern neighbor? Companies such as Volkswagen, Mercedes-Benz, BMW and Audi have base in Mexico, but many people either want to establish or expand American features. A large number of European auto components are also producing in Mexico and possibly suffering a tariff increase.
Why is Britain worried?
According to AFP, the production of cars in the UK decreased by one million in 2024 and Trump tariffs are not helping black cloud cases emanating from danger. As factory re -operates operations to accommodate large -scale construction of electric cars here, Trump’s direct attack on Electric cars imported into America is not well seen to Britain, Even though most models make way for EU for exports and not America. According to the lobby Group Society of motor manufacturers and traders, only 10 percent of the UK car exports only make way for the US. And yet, anxiety is real.
Why is the European Union worried?
The German automotive giant Mercedes and BMW have increased efforts to expand production capabilities within the US. It is 75 percent of the content of a vehicle from North America under the United States -Mexico -Knada Agreement Free Trade Treaty to meet the requirements of a car which came into force in 2020. Now with the possibility of increased tariff on manufactured cars. Canada and Mexico, however, options may be limited other than construction in the US.
For Volkswagen, many of its top -split cars in the US – led by Tiguan – are manufactured in Mexico and therefore, concerns are very real. Reports said that in 2024, about 29 percent of Audis registered in the US were sent from Mexico.
Stelantis, which owns brands such as RAM and Jeep, offers many hot-sellers in the US that are produced entirely in Mexico.
In fact, about half of all the cars sold by European manufacturers in the US are imported into the US.
Is China shocked?
China is really surprised. The previous US President Joe Biden imposed 100 percent tariffs on electric cars made in China, inspiring Chinese manufacturers such as BAD and SAIC to reduce their dependence on the US market. Now Trump still considers China to be a single-and-bigger financial threat to the US, but as far as vehicles are concerned, it is able to reduce the rise and spread of Chinese manufacturers on a global route to influence greatly. Can
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