Elon Musk and Tesla win from latest move

“He never asked me for a favor in business,” Trump said in an Oval Office event on Wednesday while signing the proclamation by putting on the car rates. “In reality I am a little surprised.”

While actions in automotive actions all over the world decreased, Tesla was higher than 1.5 percent Thursday. It is a rare positive session for the company, which has seen its shared shares this year, losing 27 %.

The rates offer to the car manufacturers that heavily parts in the United States an advantage and Trump has also allowed an exemption: the new withdrawals will apply only to the non -US share of vehicles and imported parties based on a free trade agreement with Canada and Mexico.

This is softened the blow for vehicles whose power lines zigzag throughout the continent. The rates on parties from Canada and Mexico that respect the commercial agreement will have effect until the United States create a process to collect these withdrawals.

The US neighbors could use that window to try to avoid full implementation, even if it is a long blow.

The move is however a broad part against the free trade agreement of the continent that Trump renegotiated during his first term in office which gave rise to a strictly integrated supply chain that covers North America. Canadian Prime Minister Mark Carley defined the rates a “direct attack”.

Foreign brands are strongly relying on imported vehicles will have to face maximum pressure. Hyundai of South Korea risks being among the most affected. Although the car manufacturer and his affiliate Kia have plants in Alabama and Georgia – and have announced an united States expansion plan of $ 21 billion ($ 33.3 billion) this week – has imported more than one million vehicles in the United States last year, representing over half of its sales in the country, according to data on global data.

“He never asked me for a favor.”

Donald Trump said Elon Musk is receiving special treatment.

Hyundai “remains engaged in the long -term growth of the US automotive industry through localized production and innovation,” said the company in a note, observing that it takes 570,000 people in the United States.

Hyundai and Kia may have to pay up to 10 trillions of victories ($ 11 billion) every year for rates in the United States if the rates of 25 % are performed, according to Hyuk Jin Yoon, analyst based in Seoul at SK Securities Co. which represents almost 40 % of the total operational profit that the two motorists obtained in 2024.

And despite having four assembly systems scattered in Kentucky, Indiana, Mississippi and Texas, in addition to the motor plants in Western Virginia and Alabama, Toyota, the largest car manufacturer in the world, it matters about half of what sells in the United States. A Toyota representative said that the operations in Mexico of the company are 100 % compliant with the USMCA free trade agreement.

Detroit’s car manufacturers were also not spared. GM matters some tamings of Chevrolet Silverado from plants in Mexico and Canada, the compact Chevy Trax SUV of Entry-Lavel level from South Korea and its family car, the Equinox Chevrolet Crossover SUV. Last year, GM sold over 200,000 each of the Equinox and Trax, which are among its cheapest vehicles. The car manufacturer also produces electric versions of Equinox and Blazer in Mexico.

Stellantis NV produces the Jeep Compass and Wagoneer SUVs in Mexico. The company matters its Pacifica Chrysler minivans from Canada and Compact Dodge Hornet and Fiat 500 from Italy.

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And even if Ford is more entrusted to the United States of his cross-town rivals, he faces his own pain. The car manufacturer builds its small pickup Maverick entry-level in Mexico and the Bronco Sport and Mustang Mach-E SUV compact.

Bloomberg

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