(Reuters) – U.S. President Trump said he may impose 25% tariffs on Canada and Mexico starting Feb. 1, sending shares of several Asian auto and battery makers lower in trading on Tuesday.
Below are the companies that may be affected (by sector, in alphabetical order):
Automakers
Audi
Volkswagen's Audi plant (ETR:) in San José Chiapa, Mexico, manufactures the Q5, and employs just over 5,000 people. Its website showed it produced nearly 176,000 vehicles in 2023. In the first half of 2024, nearly 40,000 vehicles were exported to the United States, according to the Mexican Automobile Manufacturers Association.
BMW (ETR:)
BMW's plant in San Luis Potosi, Mexico, produces the 3 Series, 2 Series Coupe and M2, with nearly all production going to the United States and other markets around the world, according to the automaker. From 2027, it will produce the all-electric “Neue Klasse” model line.
BYD (SZ:)
Chinese electric car maker BYD is looking for sites to build a factory in Mexico, but has repeatedly said the factory will serve the domestic market and not produce cars for sale in the United States.
Honda motorcycles
Honda (NYSE:) Motor Company sends 80% of its Mexican production to the U.S. market, and COO Shinji Aoyama warned in November that it would have to consider shifting production if the U.S. imposes permanent tariffs on vehicles imported from the country.
Jack Motors
Since 2017, the Chinese company JAC Motors has had a joint venture in Mexico with Giant Motors to assemble JAC brand cars. SAIC-owned MG in August announced plans to build a factory in the country.
Kia company
The South Korean company Kia owns a factory in Mexico that manufactures its own cars and a small number of Tucson SUVs for its Hyundai Motor subsidiary for American exports.
Mazda
Mazda said it produced about 209,000 vehicles in Mexico in 2024 and exported about 60% of them to the United States.
Its president, Masahiro Moro, said in November that the tariff issue was “not a problem that can be solved by individual companies” and that he would carefully study the details before deciding his response.
Nissan engine
Nissan (OTC:) Motor Company has two plants in Mexico where it manufactures Sentra, Versa and Kicks models for the US market. It produced approximately 505,000 cars in Mexico in the first nine months of 2024. The company did not disclose the number of those exported to the American market.
stars
Stellantis (NYSE:) operates two assembly plants in Mexico: Saltillo, which makes Ram pickups and trucks, and Toluca, for the Jeep Compass midsize SUV. The Franco-Italian group also has two assembly plants in Ontario, Canada: Windsor, where it makes Chrysler models, and Brampton, which is currently undergoing retooling and is scheduled to resume production in 2025 with a new Jeep model.
Toyota engine
Toyota Motor Company (NYSE:) is building its Tacoma pickup truck at two plants in Mexico. It sold more than 230,000 of them in the United States in 2023, representing about 10% of its total sales in that market. Toyota used to produce the Tacoma in the United States, but now ships it all from Mexico, which accounts for most of the production at the factories.
Volkswagen
Volkswagen's Puebla plant is the largest auto plant in Mexico and one of the largest in the Volkswagen Group, according to the automaker's website. Nearly 350,000 cars were built there in 2023, including the Jetta, Tiguan and Taos, all destined for export to the United States.
Car suppliers
Car life
Sweden's Autoliv (NYSE:), the world's largest maker of air bags and seat belts, said it employs about 15,000 people in Mexico, and declined to comment on exports to the United States from there.
Michelin
Tire maker Michelin (EPA:) has two plants in Mexico – Queretaro and León – and three in Canada: Pictou, Bridgewater and Waterville.
Yanfeng
Chinese seat maker Yanfeng Automotive Interiors has been producing in Mexico for years to supply automakers including General Motors (NYSE:) and Toyota.
Others
Other parts makers with factories in Mexico that serve the production of cars for the US market include Italian tire maker Pirelli and the premium Italian brake maker. Brembo (BIT:) and Eurogroup denominations in Italy.
Eurogroup Laminating, whose clients include Tesla (NASDAQ:), specializes in stators and rotors, two key components of electric motors and generators.
US automaker Tesla has encouraged its Chinese suppliers to set up factories in Mexico in 2023, mainly to supply its planned factory in Mexico.
Tesla originally planned to start production in Mexico in early 2025 but has largely turned the corner on an expansion plan for its Texas factory.
Electronics
Foxconn
The world's largest electronics contract manufacturer, Taiwan Foxconn (SS:), is building a giant AI server factory with Nvidia (NASDAQ:) in Mexico. It plans to begin production as early as 2025 to manufacture a liquid-cooled server containing Nvidia's powerful new Blackwell family of AI chips.
Lenovo
Chinese computer company Lenovo produces servers and other data center products at a massive site in Monterrey, Mexico, which it expanded in 2021. It said at the time that all of its data center products for the North American market are manufactured in Monterrey.
LG Electronics
South Korea's LG Electronics manufactures televisions, home appliances and electric vehicle parts at its Mexican sites. It said in November it was reviewing possibilities, including changes to trade policies.
Samsung Electronics
South Korean company Samsung Electronics manufactures televisions and home appliances in Mexico and exports them to the United States
Food and drink
Campari
Italian spirits group Campari (LON:) has three production sites in Mexico, the main one producing tequila under its Espolon brand, and one in Canada, producing Canadian whiskey brand Forty Creek, according to its latest sustainability report.
According to Citi, Campari imports 27% of its US sales from Mexico and Canada.
Packaged goods
Procter & Gamble and Unilever
Procter & Gamble (NYSE:) and Unilever (LON:) is among the major packaged goods companies exposed to tariffs on imports from Mexico, data show.
About 10% of P&G's shipments in the three months to the end of September were from Mexico, according to import data provider ImportYeti. Data show that about 2% of Unilever's marine imports to the United States come from Mexico.
Both companies and other large consumer groups such as PepsiCo (NASDAQ:) and Lay's Chips, have collectively invested hundreds of millions of dollars in their Mexican supply chains.
