BMW, Volkswagen, Honda, Stellantis, Toyota, General Motors
- President-elect Trump plans to levy 25% tariffs on goods from Canada and Mexico, he said Monday.
- These tariffs could include vehicles imported into the US.
- There are dozens of Mexican and Canadian-made models sold in the US.
President-elect Donald Trump on Monday announced plans to enact 25% tariffs on goods made in Canada and Mexico when he takes office in January.
Mexico is the largest trade partner for the US, accounting for nearly 16% of total trade over the first three quarters of this year. Canada isn’t far behind as the country’s second-largest trading pattern, accounting for about 14.5% of trade.
Tariffs on goods from Mexico and Canada are especially problematic for the US automotive industry.
Mexico alone exports more than 2.3 million cars a year to the US, according to Commerce Department data.
Foreign and domestic carmakers like Ford, GM, and Nissan have invested decades of time and billions of dollars to establish a well-oiled, cross-border manufacturing and supply chain operation to make vehicles destined for US dealerships.
A 25% tariff would not automatically mean a matching price increase, though it would leave automakers — already struggling with shrinking profit margins — with little room to eat the cost without increasing the sticker price of their vehicles.
Large retailers like Walmart and Best Buy have already said consumer prices are likely to rise if businesses pass on cost increases to consumers.
Parts for cars, trucks, and SUVs sold in the US can cross the border several times during their production process, thanks to friendly conditions fueled by various regional trade agreements over the years.
Representatives from Ford, Honda, and the American Automakers Policy Council, a lobbying group representing Detroit’s Big 3, did not immediately respond to requests for comment.
Nissan, Stellantis, General Motors, and Toyota declined to comment.
This comes at a bad time for US consumers who have seen the average cost of a new car skyrocket more than $10,000 since 2019 to more than $48,000. Many automakers, meanwhile, are planning layoffs and plant closures amid a slowdown in EV demand.
Information from the National Highway Traffic Safety Administration shows that several dozen vehicles made in Canada and Mexico are currently sold in the US.
Here’s a closer look at these models, which range from pickups to luxury SUVs and EVs:
BMW
Paul Marotta/Getty Images
Jim Fets, General Motors
Honda
Kia
Mercedes-Benz
Nissan
Stellantis
Toyota
Volkswagen
This article was originally published by Benjamin Zhang at All Content from Business Insider – Read this article and more at (https://www.businessinsider.com/cars-made-in-mexico-canada-trump-tariff-price-hikes-2024-11).
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