Auto tools hulk Magna raises concerns about protectionist trade measures

Canadian automobile tools hulk Magna International Inc. cited a arise of protectionist trade measures in a Trump epoch as a pivotal risk to a automobile attention as it reported a latest quarterly results.

Chief executive Don Walker pronounced Friday any limit composition taxation imposed by a United States would be disastrous for a industry, though remarkable it’s still too early to tell what’s going to happen.

“The attention as a whole is perplexing to get all a contribution to a right people so during slightest they know what a impact competence be,” he pronounced during a discussion call with financial analysts.

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“I consider it will be utterly a while before we unequivocally know what a changes competence be, what a impact would be, and zero happens overnight. But we are really closely examination and carrying impasse in any discussions.”

Magna, formed in Aurora, Ont., has operations in 29 countries including a U.S. and Mexico.

In identifying some of a some-more poignant risks in a quarterly financial report, a tellurian retailer pronounced a automobile attention is contingent on open borders, quite in Europe and North America.

“The continued expansion of protectionist sentiments and doing of measures that block a giveaway transformation of goods, services, people and collateral could have a element inauspicious outcome on a operations, profitability or formula of operations,” a association said.

U.S. President Donald Trump has pronounced he wants changes to a North American Free Trade Agreement, complained about automakers changeable prolongation to Mexico, and lifted a probability of tariffs.

He has also pulled a nation from appearance in a Trans-Pacific Partnership.

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The moves in a U.S. come amid rumblings in Europe where Marine Le Pen and her National Front are campaigning on promises to get France out a euro and a European Union.

Magna pronounced Friday a distinction for a final 3 months of 2016 amounted to $478 million US or $1.24 per diluted share, somewhat adult from a distinction of $476 million US or US$1.17 per diluted share in a same duration a year earlier.

Sales in a entertain totalled $9.25 billion US, adult from $8.57 billion US.

The association also lifted a quarterly division to 27.5 cents per share from 25 cents per share.

Article source: http://www.cbc.ca/news/business/magna-protectionist-trade-1.3998282?cmp=rss