Together with a barrage of rates in other sectors, including Pharmaceuticals, Trump said on Thursday that the US would impose the tasks of 25% on the entry of heavy trucks from 1 October.
The news comes after Brussels and Washington agreed in July that almost all the goods that entered the EU, including cars, would be subject to a basic line rate of 15% and that this would not be added to existing rates.
Impact not yet clear
The German Auto Industry Association called the move “Incomprehensible”, the addition of “extra trade barriers would not only tax the investments and jobs in the US further, but also weaken the supply chains and increase the costs”.
The shares of Daimler Truck fell by 2% by 1413 GMT, while shares in Traton of Volkswagen ownership were 2.4% lower.
Citi said that a rate of 25% on trucks in Mexico would probably have an impact of 700-800 million euros ($ 818- $ 934 million) on the win for Daimler Truck, although the group could be able to absorb about half of them in the short term through price increases. Neither Daimler Truck nor Traton export to the United States from Europe, because they have factories in the US and locations in Mexico that fall under the USMCA -free trading pact. Analysts at Bernstein said it was not explicitly said that Trump’s announcement would apply to the USMCA-compliant Mexican sites, but that they assumed that this was the case.
“Finally, it is also not clear whether the industry -specific rates will be above the national rates, although some countries, including the EU, have negotiated agreements that prevent tariff stacks,” the analysts said.
Volvo Group, who produces all his American trucks in his own country, said that it welcomed the efforts of the US government “to get rid of the comparative disadvantage of producing in the US”. The shares rose by 3.5%.
Daimler Truck and Traton refused to comment.
($ 1 = 0.8562 euros)
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