Carmakers see $17 bn wiped out after Trump announces tariffs on Mexico

The world's largest automakers -- including Ford Motor Co., Toyota Motor Corp. and Volkswagen AG -- lost $17 billion in market value in Friday trading

The automotive industry is bearing the brunt of trade-war crossfire again as US President Donald Trump threatens to slap tariffs of as much as 25 per cent on goods from Mexico, a key production hub for carmakers from Mazda Motor Corp. to General Motors Co.

Mexico is the largest source of US vehicle and auto-parts imports, meaning tariffs would increase costs for virtually every major manufacturer. In late night tweets Thursday, Trump warned tariffs would start at 5per cent on June 10 and increase to 25 per cent on Oct. 1 unless Mexico stops immigrants from entering the US illegally.

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