Immediate was the impact on the car industry following the announcement of US President Donald Trump to impose a 25% duty on all foreign imports in the US with automotive giants responding with prices to raise prices, imposition of import fees, stoppage and production.

In particular, as part of plans aimed at transporting production to US factories and boosting US jobs, the Trump government introduced 25% duties on Foreign cars on Thursday. The White House also announced that it intends to impose duties on some car spare parts no later than May 3.

The measures, which are independent of Trump’s sweeping new duties to the largest US partners in the US, have hit the global automaker.

The shares of some of the world’s largest automakers fell on Friday, expanding the major losses of the previous meeting.

The automakers suffered an even greater decline when the China Treasury announced that Beijing intends to impose a 34% duty on all the goods imported from the US, starting on April 10.

Stelantis, who holds well -known brands such as Jeep, Dodge, Fiat, Chrysler and Peugeot, fell 7% on the stock market at 1:30 pm. London time. Its stock in Milan declined more than 8% at the previous meeting.

The German Volkswagen, along with BMW and Mercedes-Benz Group, recorded about 4%losses.

How did the automakers react

Volkswagen, Europe’s largest automaker, plans to add fees to the prices of vehicles it sends to the US in response to Trump’s duties. The German colossus is also alleged to have discontinued all the railway vehicles manufactured in Mexico to the United States.

These measures, originally mentioned by the specialized magazine Automotive News, appear to underline the immediate impact of Trump’s duties on the company.

“We are informing our dealers’ network of all aspects of the business and we want to be very transparent as we manage this period of uncertainty,” a Volkswagen spokesman told CNBC via email on Thursday.

“We are thinking of the interest of our representatives and customers, and as soon as we quantify the impact on the business, we will inform our representatives of our strategy,” he added.

Stelantis, meanwhile, announced on Thursday that it will temporarily suspend production in two of its factories in Canada and Mexico. This move means that about 900 US employees, working in supporting factories, will be temporarily available.

Stellantis’s actions are considered one of the most drastic reactions among automakers to new duties.

The production break will start on Monday and will take two weeks at the Windsor Assembly Plant assembly in Ontario, Canada, while the suspension of the Toluca plant in Mexico will last for April.

Nissan Motor, through Infiniti’s luxurious brand, announced that it is interrupting the production of two crossover models made in Mexico for the US market indefinitely.

In a memorandum to retail traders, Infiniti Americas Vice President Thiago Castro said the production of QX50 and QX55 models for the US is “suspended until younger” due to duties, as Automotive News said on Thursday.

A company spokesman confirmed the actions at CNBC and noted that the Japanese car industry is considering production and supply chain functions to find optimum efficiency and sustainability solutions.

Strengthening production in the US
The escalating world trade war is expected to have a profound impact on the car industry, given the large globalization of supply chains and large dependence on production units across North America, and especially in Mexico.

Swedish Volvo Cars is said to have announced on Thursday that it intends to boost US car production and accelerate its regional investments, creating production nodes in China and Europe.

According to Reuters, Volvo Cars CEO Hakan Samuelsson said on Thursday that “we are well prepared in China and Europe. But we have to improve in the US to bypass the duties in imports. “

Volvo Cars spokesman said Friday that the company intends to increase SUV ex90 production in the US in order to increase sales volume and reduce costs.

A spokesman for the company said that “Volvo is considering the possibility of adding another production model to its US factory, which has an annual capacity of 150,000 cars.”

In a separate development, the Italian Ferrari, which specializes in luxury cars, announced last week that it will increase the prices of some of its models after April 1 in response to new US duties.

This increase can be up to $ 50,000 at the price of a typical car’s car.