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Major concern as automakers deal with a bumpy road through Mexico

Nick Monte
Producer

The Big Three automakers are flashing their warning lights. Companies like General Motors (GM), Ford (F) and Fiat Chrysler (FCAU) are regrouping as the White House is threatening to implement tariffs against Mexico.

The announcement sent stocks tumbling. Over a five-day span GM is down roughly 5%, while Ford is about 3.5% lower, and Fiat Chrysler marginally lower at 0.8%. The largest categories of U.S. imports from Mexico are autos and auto parts.

While speaking on Yahoo Finance’s The First Trade with Alexis Christoforous and Brian Sozzi, Rebecca Lindland, founder of RebeccaDrives.com, said it will impact everybody.

“I’m really concerned, because this will so negatively impact consumers, who at the end of the day are going to end up paying for this additional tariff or tax on both the parts that they buy at an auto supply place and a new vehicle they may purchase at any number of dealers,” Lindland said.

And it’s not like competitors like Tesla (TSLA), Toyota (TM) and Honda (HMC) have a chance of benefiting from a U.S.-Mexico trade dispute. “There’s no manufacturer that’s immune to the situation,” she said.

Meanwhile, automakers are enjoying a solid month of sales figures in May. Fiat Chrysler, Nissan (NSANY) and Toyota posted gains. With looming tariffs there’s concern the administration may cripple the industry.

“Keep in mind we’re still looking at an annual selling rate of about 16.5 million to 17 million units. So there’s a lot of cars out there being sold,” Lindland said. But about “15% of those vehicles [are] being imported from Mexico. There’s nobody that’s going to be insulated from this. This is going to be passed on to consumers.”

Read more:

Why Trump's Mexico tariff moves will drive up the cost of spark plugs

Manufacturers warn on 'devastating consequences' of Mexico tariffs

Tariff Man goes berserk

Goldman: Here's what an escalating trade war means for stock prices

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