In his speech on Thursday, Trump made evaluations on the automotive industry while signing the bill that canceled the regulation that would ban gasoline vehicle sales in California by 2035. President Trump stated, "I may raise this tax in the not too distant future. The more you raise it, the more likely they are to build factories here,".
In his statement, Trump also drew attention to General Motors' (GM) plan to invest USD 4 billion in US plants over the next two years in order to avoid tariffs. The US President argued that increasing the 25% tariff on car imports could provide stronger protection to domestic producers.
Trump's remarks led to a decline in shares of major automakers such as GM, Ford Motor Co. and Stellantis NV, maker of the Jeep brand. GM and Ford shares ended the day with a 1.22% loss, while Stellantis shares decreased by 1.8%.
It is stated that Trump's message on automobile taxes may have important repercussions for both the industry and global trade policies.
Comments
No comment yet.