A car trailer waits next to the border wall before crossing in Tijuana, Baja California, Mexico, in the United States on January 22, 2025 in Tijuana.
Guillermo Arias | AFP | Getty pictures
Detroit – The tariffs, which were announced on Saturday by the Trump administration of 25% for goods from Canada and Mexico, as well as additional 10% for products from China will have a profound influence on the global automotive industry.
For months, the car manufacturers have been pursuing a “waiting time” approach for the tariff threat of the Trump government. This waiting time ends and the car manufacturers are expected to implement previous emergency plans in order to compensate for additional costs in the coming weeks and months.
Depending on the details, the tariffs on Mexico could have the greatest influence on the automotive industry, followed by Canada and China, depending on the car manufacturer.
“Every tariff action must be followed with a renegotiation of the [United States-Mexico-Canada Agreement]And a complete review of the company trade regime, which devastated the American and global working class, said Shawn Fain, President of the United Auto Workers Union.
Read more CNBC tariffs reporting
General Motors And other large car manufacturers did not immediately answer a comment on the tariffs on Saturday evening. Others, like Ford, rejected a statement, while Honda made a broad explanation: “North American car trade is the key to the success of Honda worldwide and we look forward to a quick solution that offers clarity and stability throughout the region.”
Most large car manufacturers have factories in the USA. However, they still rely on imports from other countries, including Mexico, to meet American consumer demand.
Almost every large car manufacturer who works in the USA has at least one work in Mexico, including the six best-selling car manufacturers, which make up more than 70% of US sales in 2024.
A tariff is a tax on imports or foreign goods that are taken to the United States. The companies that import the goods pay the tariffs, and some fear that companies would simply pass on additional costs to consumers – increase the costs for vehicles and may reduce demand.
The formal announcement offers companies clarity, but could cost car manufacturers, many of which have been producing vehicles without tariffs in Canada and Mexico for decades.
The uncertainty about the trade called for a tribute from GM on Tuesday when the existing car manufacturer had one of his worst days in years, even after defeating the Wall Street expectations of 2025 and the upper and lower line for the fourth quarter had.
“Our key to GMS 4Q [earnings] The result is that the chance for GM is very convincing, the US uncertainty of policy has to be navigated for the time being, ”said Barclay's analyst Dan Levy on Wednesday in an investor note.
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GM did not take potential tariffs into account in its instructions, which CFO Paul Jacobson described as a “cautious” approach, since no obligations for North American goods had yet been implemented.
Both Jacobson and GM CEO Mary Barra said that the company had emergency plans for measures, but that was not out to appease anxious investors.
“There is just so much noise,” Jacobson told investors on Tuesday, among other things, the inauguration and California forest fires. “We are careful until we get a little more smooth data from the market just because January was so loud.”
“Massive effect”
The tariffs could have a massive impact on the global automotive industry and possibly reduce the result of companies such as GM, which has a significant production company all over North America.
“Regardless of the time, these flat -rate tariffs would have a massive impact on the auto industry,” said S&P Global Mobility in a report this week. “Practical no [automaker] Or the supplier working in North America would be immune according to the report.
Blackstone's US CEO, CEO Stephen Schwarzman (L) and General engine -CEO Mary Barra (R), has a strategy and guideline forum with the managing directors of USAM 3, 2017 in Washington a strategy and guideline forum.
Kevin Lamarque | Reuters
Almost every large car manufacturer who works in the USA has at least one work in Mexico, including the six best-selling car manufacturers, which make up more than 70% of US sales in 2024.
The industry is deeply integrated between the countries. Mexico imports 49.4% of all auto parts from the USA.
Wells Fargo estimates that 25% tariffs for Mexico and Canada imports would cost the traditional car manufacturer in Detroit billions of dollars a year. The company estimates the effects of 5%, 10% and 25% tariffs on GM, Ford engine and Chrysler parent Sternantis Together would be $ 13 billion, $ 25 billion or $ 56 billion.
S&P Global Mobility, formerly IHS Markit, estimates that a vehicle of 25,000 US dollars from Canada or Mexico would add 25% to its costs of 6,250 US dollars -some, if not most, passed on to the consumer could become.
Car manufacturers endanger the most endangered
S&P mobility reports in Canada and Mexico produce around 5.3 million vehicles with around 70% – almost 4 million – intended for the USA
Mexico made up the majority of these vehicles as five car manufacturers – Ford, GM, Stellantis, Toyota engine And in 2024 Honda produced an estimated 1.3 million light vehicles in Canada, mainly for the US market, according to a non-profit research group of Canadian production.
Some of these car manufacturers also rely on production in Mexico, but not all producers would be exposed to the same disorders. In percent of the sales basis, German car manufacturer Volkswagen is most exposed to customs risk in Mexico, followed by Nissan engine and Stellantis, S&P global mobility reports.
“We obviously work on scenarios,” said Antonio Filosa, head of the North American operations of Stellantis, January 10. “Will work accordingly.”
Here are the car manufacturers, which are most exposed to vehicles imported from Mexico, based on the percentage of their US sales south of the border:
- Volkswagen: 43%
- Nissan: 27%
- Stellantis: 23%
- GM: 22%
- Ford: 15%
- Honda: 13%
- Toyota: 8%
- Hyundai: 8%
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