Detroit – As the threat of President Donald Trump to impose 25% tariffs on imports from Canada and Mexico as soon as it is coming on Saturday, the global automotive industry is collectively containing its breath.
For months, automobile manufacturers have been adopting a “wait and see” approach for possible Trump administration tariffs. Trump promised to impose duties at its inauguration this month, then established an objective date of February 1 for taxes on the key commercial partners of the United States.
Regardless of whether Trump imposes rates, car manufacturers such as General Motors, the best seller in the United States, want clarity so they can plan their businesses around politics.
A tariff is an import tax, or foreign goods, brought to the United States. Companies that import goods pay tariffs, and some fear that companies simply pass additional costs to consumers, which increases the cost of vehicles and potentially reduces demand.
The uncertainty about commerce affected GM on Tuesday, when the actions of the car manufacturer had one of their worst days in years, even after he expired the expectations of Wall Street for his guide of 2025 and its end and lower for the room quarter.
“Our key takes 4q from GM [earnings] The result is that although the opportunity for GM is very convincing, the political uncertainty of the United States must navigate at the moment, ”said Barclays analyst Dan Levy in an investor note on Wednesday.
GM did not take into account the possible tariffs in his guide, which the financial director Paul Jacobson described as a “cautious” approach that no task of US goods has been implemented.
Both Jacobson and the CEO of GM, Mary Barra, said the company has contingency plans for any action, but that was not enough to appease anxious investors.
“There is so much noise,” Jacobson told investors on Tuesday, citing the forest fires of inauguration and California, among other topics and events. “We are being cautious until we get a little more market data just because January was very noisy.”
‘Mass impact’
Tariffs could have a massive effect on the global and potential automotive industry to reduce profits for companies such as GM, which has significant manufacturing operations in North America.
“Regardless of time, these general tariffs would have a massive impact on the automotive industry,” said S&P Global Mobility in a report this week. “Practically not [automaker] o Supplier “to operate in North America would be immune, according to the report.
The majority of the main car manufacturers have factories in the US.
Almost all important automobile manufacturers operate in the US.
The industry is deeply integrated among countries, with Mexico importing 49.4% of all US car parts. UU. In turn, Mexico exports 86.9% of its auto parts production to the US International Trade Administration.
Wells Fargo estimates that 25% rates in imports from Mexico and Canada would cost the traditional car manufacturer thousands of dollars a year. The firm estimates that the impact of 5%, 10% and 25% of tariffs on GM, Ford Motor and Chrysler Stellantis would be collectively $ 13 billion, $ 25 billion and $ 56 billion, respectively.
S&P Global Mobility, previously IHS Markit, estimates a 25% service in a $ 25,000 vehicle in Canada or Mexico would add $ 6,250 at its cost, some, if not, most of which could be transmitted to the consumer.
More at risk car manufacturers
S&P Mobility Reports Plants in Canada and Mexico produce approximately 5.3 million vehicles, with approximately 70%, almost 4 million, destined for the United States.
Mexico represented most of these vehicles, since five car manufacturers (Ford, GM, Stellantis, Toyota Motor and Honda, produced only one estimated of 1.3 million light service vehicles in 2024 in Canada, largely for the American market, according to Canadian manufacturing manufacture of non -profit research group.
Some of these car manufacturers also greatly trust production in Mexico, but not all producers would face the same interruptions. On a percentage of sales, the German car manufacturer Volkswagen is the most exposed to the tariff risk in Mexico, followed by Nissan Motor and Stellantis, reports S&P Global Mobility.
“We are obviously working on stage,” said Antonio Filosa, head of the North American Stellantis operations, on January 10. “But yes, we must wait for your decisions and after the decision of Mr. Trump and his administration, we, we, we, we, we will work accordingly.”
Here are car manufacturers that are most exposed to tariffs of vehicles imported from Mexico, depending on the percentage of their US sales that occur south of the border:
- Volkswagen: 43%
- Nissan: 27%
- Stellantis: 23%
- GM: 22%
- Ford: 15%
- Honda: 13%
- TOYOTA: 8%
- Hyundai: 8%