President Donald Trump announced plans to impose a 25% tariff on goods imported from Canada and Mexico, set to take effect this week. Additionally, a 10% tariff will be implemented on imports from China.
These measures are expected to have significant economic repercussions, particularly for the automotive industry.
Impact on the Automotive Industry
The new tariffs will include vehicles imported into the United States, posing major challenges for automakers. Dozens of Mexican and Canadian-made cars are sold in the U.S., and many vehicles rely on cross-border supply chains.
Parts for cars, trucks, and SUVs often cross the border multiple times during the production process, benefiting from long-standing regional trade agreements.
Automakers such as Stellantis, Honda, Ford, GM, and Nissan, which have invested billions in cross-border manufacturing operations, will face major disruptions.
Mexico alone exports more than 2.3 million vehicles annually to the U.S., according to Commerce Department data.
