A car holder in the queue is waiting next to the border wall before crossing to the United States in the Commercial Port of Tijuana, Baja California, Mexico, on January 22, 2025.
Guiro Arias AFP | Gety pictures
Detroit – The Trump administration is expected to have 25 % on Saturday by the Trump administration on the goods of Canada and Mexico, in addition to an additional 10 % on products from China a deep impact on the global auto industry.
For several months, car manufacturers were taking Approach “waiting and seeing” To threaten the Trump administration tariff. That waiting period It approaches its end It is possible that car manufacturers will need to implement previous emergency plans to try to compensate for additional costs in the coming weeks and months.
Depending on the details, definitions on Mexico can have the largest impact on the auto industry, followed by Canada and then China, depending on the automotive industry.
“Any tariff must be followed with the re -negotiation of the (USA and Cananga Convention), and a complete review of the corporate trade system that destroyed the American and international working class,” Sean Fine, President of the United Auto Company, Workers Union, He said in a statement.
General Motors Other major car manufacturers did not respond immediately to comment on the tariffs on Saturday night. Others, such as Ford, rejected the comment, while Honda issued a wide statement: “The car trade in North America is the key to Honda's success worldwide and we look forward to a quick solution that provides clarity and stability throughout the region.”
However, most of the major car manufacturers have factories in the United States, as they still rely heavily on imports from other countries including Mexico to meet the American demand for consumers.
Each major auto industry company that operates in the United States has at least one factory in Mexico, including the six six car manufacturers, which account for more than 70 % of US sales in 2024.
The tariff is a tax on imports, or foreign goods, which have been brought to the United States. Companies that import goods pay definitions, and some fear that companies simply pass any additional costs for consumers – raise the cost of vehicles and the demand decreases.
The official announcement provides some clarity for companies, but it may cost car manufacturers, many of which produced cars without tariffs in Canada and Mexico for decades, billions of dollars.
Uncertainty about trade It affected General Motors On Tuesday, when the shares of the auto manufacturer had one of its worst days in years, even after its victory over Wall Street's expectations to direct it for the year 2025 and the first and lower class summary for the fourth quarter.
“The main result of the GM's 4Q (profits) is that although the opportunity for General Motors is very convincing, it is necessary to move in American policy at the present time,” said Dan Levy, a Barclays analyst in the investor's memo on Wednesday.
General Motors shares
General Motors did not explain the potential tariff in its instructions, which financial director Paul Jacobson described as a “warning” approach, given the absence of any duties on the goods in North America.
Jacobson and General Motors CEO Mary Barra The company said it has emergency plans for any procedures, but this was not enough to satisfy the anxiety investors.
“There is a lot of noise,” Jacobson Tell the investors on TuesdayQuoting the opening and California fires, among other issues and events. “We are cautious until we get a little smoother data from the market just because January was very noisy.”
“A tremendous effect”
Drivers can have a tremendous impact on the global auto industry and may reduce corporate profits such as General Motors, which have significant manufacturing operations throughout North America.
“Regardless of the timing, these comprehensive definitions will have a tremendous impact on the automotive industry”, S& PLOBAL Mobility He said in a report this week. There is no (car maker) or resource operating in North America will be fortified, according to the report.
Surrounded by the CEO of Blackson Stephen Schwarzmann (L) and CEO of General Motors Marie Para (R), US President Donald Trump, holds a forum for strategy and politics with the CEO of the main American companies at the White House in Washington on February 3, 2017.
Kevin Lamark Reuters
Each major auto industry company that operates in the United States has at least one factory in Mexico, including the six six car manufacturers, which account for more than 70 % of US sales in 2024.
The industry was deeply combined between countries, as Mexico imports 49.4 % of all car parts from the United States in turn, as Mexico exports 86.9 % of car parts production to the United States, according to the International Trade Administration.
Wells Fargo estimates that the customs tariffs are 25 % on Mexico and Canada's imports will cost the traditional car maker in Detroit billions of dollars annually. The company estimates the effect of a tariff 5 %, 10 % and 25 % on General Motors, Ford Motor And the father's Churisler Stelantis Completely will be 13 billion dollars, 25 billion dollars and 56 billion dollars, respectively.
The S & P Global Mobility, who was previously working in IHS Markit, is estimated at 25 % on a $ 25,000 vehicle from Canada or Mexico will add $ 6,250 to its cost – if not most of them can be transferred to the consumer.
Auto industry companies most at risk
S&P reports plant plants in Canada and Mexico produce about 5.3 million cars, with about 70 % – approximately 4 million – dedicated to the United States
Mexico formed the majority of these vehicles, as five automobile companies – Ford, General Motors, Stelins, Toyota is an engine Honda – I only produced what is estimated 1.3 million light vehicles In 2024 in Canada, to a large extent for the American market, according to A non -profit research collection for Canadian manufacturing.
Some of these auto manufacturers rely heavily on production in Mexico, but not all producers will face the same disturbances. On a percentage of sales, the German auto industry company Volkswagen It is the most exposed to the risk of customs tariffs in Mexico, followed Nissan engine Stellantis, S&P International Mobility Reports.
“We are working, clearly, in scenarios,” Antonio Villaosa, head of Stelins' operations in North America, He said January 10. “But yes, we need to wait for his decisions and after Mr. Trump's decision and management, we will work accordingly.”
Below is the automotive companies that are exposed to definitions of cars imported from Mexico, based on the percentage of their sales in the United States that are produced in the southern border:
- Volkswagen: 43 %
- Nissan: 27 %
- Stelantis: 23 %
- GM: 22 %
- Ford: 15 %
- Honda: 13 %
- Toyota: 8 %
- Hyundai: 8 %