Autoworkers in the Smyrna Complex tab at Nissan, Tennessee, June 6, 2022. The characters employs over 7,000 people and produces various vehicles, including leaf and Rogue crossover.
Michael Wayland / CNBC
Detroit – about a third of vehicle production in North America may be limited to the next week as a result 25% of President Donald Trump's tariffs In Mexico and Canada, when manufacturers manufacturers try to relieve increased costs, and buyers refrain from buying new cars and trucks.
According to the new analysis of outstanding data and forecasting S&P Global Mobility, this lost production would be synonymous with about 20,000 pieces per day.
The impact of production, as well as the possibility of layoffs, will continue to increase if the tariffs that Trump implemented on TuesdayThey are not changed or raised.
“We have a new dawn to some extent. This is a significant move,, “said Stephanie Brinley, deputy director of AUTIINTELLIGENCE at S&P Global Mobility, during an internet seminar with Automotive Press Association.
S&P Global Mobility reports that on average 25 manufacturers produce 63,900 light passenger vehicles in North America a day. Most of them, about 65%, consist of the USA, and then 27% in Mexico and 8% in Canada.
President Donald Trump signs an executive ordinance at the Oval Office on February 25, 2025.
Alex Wong | Getty Images News Getty images
The affected production will vary depending on the location of the manufacturer, vehicle and plant. This may mean that the plant is completely idle or that it produces fewer vehicles that rely on parts that cut borders many times in various forms before installing in the vehicle.
“I think we'll see how some plants fall. We will see some plants simply slow construction rates, “said Brinley. “It will not necessarily be consistent (car manufacturers). This will be a lot about what they need and how much they need. “
Automotive shares have fallen more than a wider market on Tuesday as a result of tariffs.
GM, Ford and Stellantis Stocks
The tariff is a tax on imports or foreign goods brought to the United States. Companies importing goods pay tariffs, and some experts are afraid that companies will simply transfer to consumers all additional costs – increasing vehicle costs and potentially reducing demand.
Several manufacturers manufacturers this week refused to comment directly on 25% of tariffs, based on earlier comments or commercial associations on their behalf.
American Automotive Policy Council that represents Ford engineIN General Motors AND Stellantis -from which all have a large influence of tariffs-they argue that vehicles and parts that meet the rigorous requirements regarding the national and regional agreement of the United States-Music-Tanada or USMCA should be exempt from tariff growth.
“Our American car manufacturers who have invested billions in the US to meet these requirements should not have their competitiveness undermined by the tariffs, which will raise the costs of building vehicles in the United States and Stymie Investment in the American labor force, while our competitors from North America use easy access to our home market,” said former Missouri. ” Gov. Matt Blunt, president of AAPC, at APC at AAPC at AAPC in AAPC, AAPC at AAPC, AAPC, AAPC, AAPC in AAPC. Statement on Monday evening.
Alliance for Automotive Innovation, a trading group representing the vast majority of car manufacturers selling vehicles in the USA, warned that no manufacturer would come out unscathed, which increased consumer costs.
“This is not hypothetical – said in a statement the general director of the Trade Group, John Bozzella. “On all producers they will affect these tariffs on Canada and Mexico. Most expect that the price of some vehicle models will increase – up to 25 percent – and the negative impact on the price of the vehicle and the availability of the vehicle will be felt almost immediately. “
Nissan engine Late Monday said: “The detained tariffs of this size will have a negative impact for automotive producers and we assess how we will take action properly. We hope that the parties may reach an agreement on a productive path. “
Several managerial staff and analysts from Wall Street described tariffs as putting unnecessary chaos into the automotive industry.
“President Trump said a lot about the strengthening of our American automotive industry, bringing greater production, greater innovation in the US, and if its administration can achieve this, it would be one of … the most characteristic achievements” Ford CEO, Jim Farley – said in February during Wolfe Research Investor Conference. “So far we see a lot of costs and a lot of chaos.”
Tariff supporters claimed that they are a way to help trade differences with countries, and potentially serves as a lever to renegotiate the USMCA, which Trump originally negotiated during the first term of the president.
However, car manufacturers are silent about the financial influence they expect from such tariffs, however CEO GM Mary Barra In February, he said that the manufacturer could alleviate short -term effects from 30% to 50% of additional costs “without implementing capital”.
It is difficult to calculate the total impact of such tariffs on the production of vehicles in North America.
“This is one of the most smooth situations that the automotive industry has really seen … In addition to a few years of unexpected situations with Covid, the supply situation,” said Brinley. “The industry itself developed as a bit more agile than maybe seven or eight years ago … But many of them are very uncertain.”
The automotive industry is a complex global system that is certainly developing. S&P Global Mobility reports that there is an average of 20,000 parts in the vehicle when it is torn to nut and screws. Parts can come from 50 to 120 countries.
For example, Ford F-150 is mounted only in the USA, but it has about 2,700 main accountable parts, which exclude many small elements, according to Caresoft, Engineering and consulting company.
According to Caresoft, these parts come from at least 24 different countries.