Trump tariffs for the automotive industry of Mexico and Canada

Detroit – tariffs announced on Saturday by Trump's administration in the amount of 25% for goods from Canada and Mexico, as well as an additional 10% on products from China, will have a deep impact on the global automotive industry.

Car manufacturers have been accepting for months “Waiting and wind” approach to threaten the Trump administration tariff. This waiting period is coming to an end And car manufacturers will probably have to implement earlier emergency plans to compensate for additional costs in the coming weeks and months.

Depending on the details of the tariff on Mexico, they can have the greatest impact on the automotive industry, followed by Canada, and then China, depending on the car manufacturer.

“All tariff activities with renegotiation (United States-Massic-Massyk-Tanada) should be used and a full review of the corporate trade system, which devastated the American and global working class”, Shawn Fain, President of United he said in a statement.

General Motors Other main car manufacturers did not immediately answer the commentary on tariffs on Saturday evening. Others, such as Ford, refused to comment, while Honda issued a wide statement: “North American Auto Trade is the key to Honda's success around the world and we are waiting for a quick resolution that ensures brightness and stability throughout the region.”

Most of the main car manufacturers have factories in the USA, but they still largely rely on imports from other countries, including Mexico, to satisfy the American demand for consumers.

Almost every large manufacturer of producers operating in the US has at least one plant in Mexico, including six best -selling car manufacturers, which accounted for over 70% of sales in the US in 2024.

The tariff is a tax on imports or foreign goods brought to the United States. Companies importing goods pay tariffs, and some are afraid that companies will simply transfer all additional costs to consumers – increasing vehicle costs and potentially reducing demand.

A formal advertisement is a brightness to companies, but it can cost a car manufacturer, many of which have been producing vehicles without tariffs in Canada and Mexico for decades, billions of dollars.

Trade uncertainty bounced to GM On Tuesday, when the manufacturer's manufacturer's supplies had one of the worst days in the years, even after he overcome the Wall Street expectations regarding the guidelines in 2025 and the highest and highest line in the fourth quarter.

“Our key results from the result of GM 4Q (earnings) is that although the possibility of GM is very convincing, for now you should move the uncertainty of politics in the US,” said Barclays Dan Levy analyst in the investor's note on Wednesday.

GM did not include potential tariffs in its guidelines, which CFO Paul Jacobson described as a “cautious” approach, taking into account any obligations regarding goods in North America.

Both Jacobson and GM CEO Mary Barra She said that the company had emergency plans for all activities, but that was not enough to calm down restless investors.

“There is so much noise,” Jacobson Told investors on TuesdayCiting the inauguration and fires in California, including events. “We are careful until we receive slightly more smooth data from the market just because January was so noisy.”

“Regardless of time, these general tariffs would have a huge impact on the automotive industry,” S&P Global Mobility he said in the report This week. According to the report “Practically not (producer) or supplier” operating in North America, it would be resistant.

Almost every large manufacturer of producers operating in the US has at least one plant in Mexico, including six best -selling car manufacturers, which accounted for over 70% of sales in the US in 2024.

The industry is deeply integrated between countries and Mexico imports 49.4% of all car parts from the US, according to the International Trade Administration, Mexico exports 86.9% of the production of car parts to the USA.

Wells Fargo estimates that 25% of tariffs on the import of Mexico and Canada would cost the traditional billions of dollars of the car manufacturer at Detroit per year. The company estimates the impact of 5%, 10% and 25% tariffs on GM, Ford engine and Chrysler's parent Stellantis Together, he would amount to $ 13 billion, $ 25 billion and $ 56 billion, respectively.

S&P Global Mobility, previously IHS Markit, estimates 25% of the vehicle's duty in the amount of USD 25,000 from Canada or Mexico, would add USD 6,250 to costs – some, if not most of them can be transferred to the consumer.

Mexico was the majority of these vehicles as five car manufacturers – Ford, GM, Stellantis, Toyota Motor and Honda – she only produced estimated 1.3 million lightweight vehicles According to Canadian research group non -profit non -profit.

Some of these manufacturers also largely rely on production in Mexico, but not all manufacturers will face the same disturbances. Based on the percentage of sales, a German car manufacturer Volkswagen is most exposed to the risk of tariffs in Mexico, and then Nissan engine and Stellantis, S&P Global Mobility Reports.

“Of course we are working on scripts”, Antonio Filosa, head of operations in North America Stellantis, He said on January 10. “But yes, we must wait for his decisions and after the decision of Mr. Trump and his administration we will work properly.”

Here are car manufacturers who are most exposed to tariffs for imported vehicles from Mexico, based on the percentage of their sales in the USA south of the border:

• Volkswagen: 43%
• Nissan: 27%
• Stellantis: 23%
• GM: 22%
• Ford: 15%
• Honda: 13%
• Toyota: 8%
• Hyundai: 8%