WASHINGTON—As reported by Reuters, President Donald Trump hinted at imposing 25% tariffs on imports from Canada and Mexico starting February 1, citing concerns over illegal immigration and fentanyl crossing into the U.S. However, in a move that surprised markets, Trump stopped short of immediate tariff actions, instead directing federal agencies to investigate trade deficits and unfair practices. The announcement led to a relief rally in global stock markets but has left industries preparing for possible sweeping trade measures that could disrupt supply chains, overturn trade agreements, and increase costs.
Below is a summary of automakers and suppliers potentially impacted by these tariffs.
Automakers
- Audi (Volkswagen Group):
- Audi's San Jose Chiapa, Mexico, plant employs 5,000+ people and produced 176,000 Q5 vehicles in 2023, with 40,000 exported to the U.S. in early 2024.
- BMW: Produces the 3 Series and other models in Mexico, exporting nearly all output to the U.S. Plans to build the all-electric "Neue Klasse" in 2027.
- BYD: Chinese EV manufacturer scouting for a Mexico-based plant but targets only domestic production.
- Honda: Sends 80% of its Mexican output to the U.S. and may consider production shifts if tariffs are made permanent.
- JAC Motors: Partners with Giant Motors in Mexico to assemble JAC vehicles.
- Kia: Operates a Mexican factory producing vehicles, including some for Hyundai exports to the U.S.
- Mazda: Exported 60% of its 209,000 vehicles produced in Mexico in 2024 to the U.S.
- Nissan: Manufactures Sentra, Versa, and Kicks models in Mexico, with significant exports to the U.S.
- Stellantis: Operates two Mexican plants (Ram trucks and Jeep Compass) and two Canadian facilities.
- Toyota: Produces Tacoma trucks exclusively in Mexico, selling 230,000 in the U.S. in 2023.
- Volkswagen: The Puebla, Mexico, plant made 350,000 vehicles in 2023, including Jetta, Tiguan, and Taos for U.S. export.
Auto Suppliers
- Autoliv: Largest airbag and seatbelt maker, employing 15,000 in Mexico.
- Michelin: Operates tire plants in Mexico and Canada.
- Yanfeng Automotive Interiors: Supplies automakers like GM and Toyota from its Mexican facilities.
- Others: Italian firms like Pirelli, Brembo, and Eurogroup Laminations, along with Tesla's Chinese suppliers, contribute key components for U.S. automotive production.
Electronics
- Foxconn: Building a large AI server plant in Mexico in collaboration with Nvidia, targeting production in early 2025.
- Lenovo: Manufactures all North American data center products in Monterrey, Mexico.
- LG Electronics: Produces TVs, appliances, and EV parts in Mexico and may adapt to trade policy changes.
- Samsung Electronics: Makes TVs and appliances in Mexico for U.S. export.
This potential tariff policy could disrupt the supply chains of numerous automakers and electronics firms heavily reliant on Mexico and Canada for production and exports to the U.S.
