Paris (Reuters) – Valeo does not have margins allowing it to absorb customs duties by 25% and will have to increase its prices accordingly, a spokesperson for the automotive supplier.
Donald Trump announced the day before the establishment of massive customs duties on automobile imports in the United States from April 2, a new stage in the trade war launched by the American president.
Valeo currently analyzes the exact perimeter and impact of customs duties announced on Wednesday, added the spokesperson for the group specializing in driving aids.
In 2024, the equipment supplier released an operating margin of 4.3%, up 0.5 points, and said it targeted in 2025 a new increase at 4.5%-5.5%.
Despite this improvement, the director general of Valeo Christophe Périllat said at the end of February that the group could not absorb customs duties as important as 25% and that it would be necessary to increase the prices it invoices to its manufacturers customers to fully pass the additional cost.
(Gilles Guillaume report, written by Kate Entringer, edited by Zhifan Liu)
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