Understanding the Market | NEXTEER rises nearly 6% again as the tariff policies of the US, Canada, and Mexico are unpredictable; the company is the largest steering system supplier in North America
NEXTEER rose nearly 6% again, as of the time of writing, it rose 3.95% to HKD 5.53, with a transaction volume of HKD 204 million. In terms of news, the Trump administration began imposing a 25% tariff on imported goods from Mexico and Canada starting this Tuesday, but announced a delay in implementation just one day later, extending the exemption period to April 2. The erratic changes in tariff policy caught the market off guard. It is reported that Trump had previously granted a one-month exemption for automobiles covered by the US-Mexico-Canada Agreement. Guotai Junan International previously pointed out that NEXTEER is the largest steering system supplier in North America, with factories in both Mexico and North America, and its core customers are Ford, General Motors, and Chrysler, maintaining stable cooperative relationships for decades. The impact of tariff changes can be mitigated through production shifts and cost absorption by customers. Recently, China International Capital Corporation pointed out that about 40% to 45% of NEXTEER's revenue in North America comes from its Mexican factory, which will be affected by the tariff increase imposed by Trump
According to Zhitong Finance APP, NEXTEER (01316) has risen nearly 6% again, and as of the time of writing, it is up 3.95%, trading at HKD 5.53, with a transaction volume of HKD 204 million.
In terms of news, the Trump administration began imposing a 25% tariff on imported goods from Mexico and Canada starting this Tuesday, but just one day later announced a delay in implementation and extended the exemption period to April 2, causing the market to be caught off guard by the erratic changes in tariff policy. It is reported that Trump had previously granted a one-month exemption for automobiles covered by the US-Mexico-Canada Agreement.
Guosen Securities previously pointed out that NEXTEER is the largest steering system supplier in North America, with factories in both Mexico and North America, and its core customers are Ford, General Motors, and Chrysler, with which it has maintained stable cooperative relationships for decades. The impact of tariff changes can be mitigated through production shifts and customers bearing costs. Recently, Bank of China International pointed out that approximately 40% to 45% of NEXTEER's revenue in North America comes from its Mexican factory, which will be affected by the tariff increase imposed by Trump
