The play about introducing tariffs of 25 percent on goods imported from Mexico and Canada has certain consequences on the stock market.
The truck sector, with Volvo and Traton, which includes Scania, is declining – but companies such as bearing manufacturer SKF and automotive safety company Autoliv are also falling heavily.
The two latter have production in Mexico, primarily for the American market.
"Everything is negotiable"
Handelsbanken's analyst Hampus Engellau, who, in addition to SKF, also monitors the automotive sector, notes that it is difficult to make an assessment of which of Trump's threats will ultimately become reality.
It's difficult to draw any conclusions from such statements. Looking historically, Trump throws out a lot of things, then everything is negotiable. Reading his book "The Art of the Deal", you can understand how he operates, he says to TT.
Engellau emphasizes that he does not want to downplay the significance of tariffs, but it is not certain that the tariffs will become a reality from Trump's side once he becomes president again.
Now things are being thrown on the table and the negotiations begin.
New factory
Bearing manufacturer SKF inaugurated a new factory in Monterrey, Mexico, as recently as 2023, and Volvo Trucks is setting up a facility in the country to increase its capacity in the USA.
Regarding Autoliv, which, among other things, manufactures airbags, there is, according to Engellau, another important detail:
— It is important to note that Autoliv's operations in Mexico also supply production for American car manufacturers, he says.
