A car carrier trailer is located next to the border wall before crossing the United States at the Ottoy Commercial Port in the state of Tijuana, Baja California, Mexico on January 22, 2025.
Gilromo Arius | AFP | Getty images
Detroit – Tariff on Saturday announced an additional 10% on China’s products along with 25% Trump administration on goods from Canada and Mexico, it is expected to have a profound impact on the global motor vehicle industry.
For months, vehicle manufacturers are taking one “Weight-end-look” approach The tariff of Trump administration for danger. That waiting period Finally coming And the automakers will need to implement pre -contingency schemes to attempt to offset additional costs in the coming weeks and months.
Depending on the details, tariffs on Mexico can have the most impact on the automotive industry, followed by Canada and then China, the automaker.
United Auto Chairman Sean Fain Workers Union, Said in a statement,
General Motors And other major vehicle manufacturers did not immediately respond to comments about tariffs on Saturday night. Others like Ford refused to comment, while Honda issued a comprehensive statement: “North American Auto Trade is important for Honda’s success globally and we are ready for a sharp resolution that clarity throughout the region And provides stability. “
Most of the major vehicle manufacturers have factories in the US, however, they still rely more on imports of other countries including Mexico to meet American consumer demand.
Almost every major automaker working in the US has at least one plant in Mexico, which includes six top-bound vehicle manufacturer, which was responsible for more than 70% of American sales in 2024.
A tariff imports, or a tax on foreign goods, are brought to the United States. Companies importing goods pay tariffs, and some are afraid that companies will simply pass any extra cost to consumers – increase the cost of vehicles and potentially reduce demand.
The formal declaration provides some clarity for companies, but can spend vehicle manufacturers, many of which have produced vehicles without tariffs for decades, billions of dollars in Canada and Mexico.
Uncertainty about business GM took a toll On Tuesday, when Wall Street’s expectations for their 2025 guidance near the automekar stock and Wall Street’s expectations for its top and bottom of the fourth quarter were the worst days even after the worst days.
Barklez analyst Dan Levi said in an investor note on Wednesday, “Our key to GM’s 4Q (earnings) results is that while opportunity for GM is highly compelling, American policy uncertainty should be navigated for the time. “
GM stock
The GM did not calculate the potential tariff under his guidance, which CFO Paul Jacobson described as a “alert” approach, which was not given any duty on North American goods, was not yet implemented.
Both Jacobson and GM CEO Mary Barra Said that the company has casual plans for any action, but it was not enough to please worried investors.
“Just noise,” Jacobson Told investors on TuesdayThe opening and California wildfires between other issues and events. “We are alert until we get a little more smooth data from the market because January was so noise.”
‘Large scale effects’
Tariffs can have massive impact on the global motor vehicle industry and potentially reduce earnings for companies such as GM, which has significant manufacturing operations in North America.
“Despite time, these blanket tariffs will have a huge impact on the auto industry,” S&P Global Mobility Said in a report This week. According to the report, “virtually no (an automaker) or supplier” will be immune to the operation in North America.
Blackstone CEO Stephen Schwarzman (L) and General Motors CEO Mary Barra (R), who was flanks, US President Donald Trump on 3 February 2017 with a strategy and policy with key officials of leading American companies at the White House in Washington on 3 February 2017 Keep the stage.
Kevin Lamark | Roots
Almost every major automaker working in the US has at least one plant in Mexico, which includes six top-bound vehicle manufacturer, which was responsible for more than 70% of American sales in 2024.
According to the International Trade Administration, Mexico has deeply integrated the industry among countries, with imports of 49.4% of all auto parts of all the US.
Wells Fargo estimates that 25% tariffs on Mexico and Canada’s imports will spend traditional divine automakers billions of dollars per year. Firm estimates the effect of 5%, 10% and 25% tariffs on GM, Ford Motor And Chrysler Parents Descendant The collective will be $ 13 billion, $ 25 billion and $ 56 billion respectively.
S&P Global Mobility, East of IHS Market, Canada or Mexico estimates a 25% duty on a vehicle of $ 25,000, adding $ 6,250 to its cost – some if not most, most of which cannot be passed to the consumer. .
The automakers are at the most risk
S&P dynamics report produces about 5.3 million vehicles in Canada and Mexico, about 70% – about 4 million – fixed for America
Mexico was responsible for the majority of those vehicles, five vehicle manufacturer – Ford, GM, Stelanis, Toyota motor And Honda – Produced only an estimated 1.3 million light-duty vehicles In 2024 in Canada, for a large -scale American market, according to A Canadian manufacturing non -profit research group,
Some of those vehicle manufacturers rely too much on production in Mexico, but not all producers will have to face uniform disruption. Based on sales, German vehicle manufacturer Voxwagen Tariff in Mexico is the most exposed to risk, followed by Nissan motor And Stalentis, S&P Global Mobility Report.
“We are working, obviously, on landscapes,” Antonio Philosa, the major North American operations of stalentis, Said on 10 January“But yes, we need to wait for their decisions and after the decision of Mr. Trump and his administration, we will work accordingly.”
Here are the automakers that are the most exposed to tariffs on vehicles imported from Mexico, based on the percentage of their US sales originating south of the border:
- Volkswagen: 43%
- Nissan: 27%
- Salentis: 23%
- GM: 22%
- Ford: 15%
- Honda: 13%
- Toyota: 8%
- Hyundai: 8%
