US President Donald Trump has currently postponed the decision to impose 25 per cent tariffs on Mexico and Canada. Due to this, markets around the world got a sigh of relief and also returned to the domestic stock market. This changed mood of Trump, important auto analyte stocks rockets such as Sona BLW, Bharat Forge and Samvardhana MOTHERSON became rockets and jumped up to eight per cent. Samvardhan Madrasan’s shares currently jumped 7.2 per cent to ₹ 139.98, gold BLW 6.9 per cent jumped to ₹ 519 and Bharat Forge’s shares jumped 3.6 to ₹ 1,180.
Why did the rocket become shares on the announcement of Donald Trump?
According to brokerage firm Elar Securities, India exports $ 65.6 million auto parts to Mexico, which is 3 % of its total export of $ 2120 million. They mainly contain metallurgical parts such as furzings and castings. Talking about Samvardhan Madrasan, about 4 percent of its revenue comes from Mexico. Elara believes that if the tariff is imposed then the company can cover its business from there to avoid it. Now when we talk about gold BLW, 2 % of its revenue comes from Mexico which works as an assembly hub for this. According to the brokerage, if trump tariffs, since most of the value of the company is in India, then the production can be shifted to American facility.
The decision has been postponed for 30 days
A few days ago, Donald Trump announced a tariff of 25 per cent on all things coming from Mexico and most of Canada. However, 10 percent discount was given on energy products. Apart from this, it was also considered to put 10 percent tariff on Chinese things. After talking to leaders from Mexico and Canada, now Trump now announced that tariffs on imports from Canada and Mexico have been postponed for 30 days.
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