Trump tariffs will increase the prices of vehicles in the USA
Duty this Import tax foreign goods imported to United States. The importers treat Customs tariffs as the cost of conducting business activity. Additional fees introduced on Saturday Donald Trump regulation Most of them will probably be transferred to consumers, which will increase vehicle prices and potentially limit the demand for them.
American automotive industry depending on imports
For decades car manufacturers They produce vehicles worth billions of dollars and bring them without customs from Canada and Mexico. American automotive industry It is deeply integrated with neighboring countries. Mexico imports 49.4 percent all car parts from the United States. In turn, Mexico exports 86.9 percent its production of car parts to the United States, in accordance with the data of the International Trade Administration. Six most popular car manufacturers, who in 2024 were responsible for over 70 percent. sales in the USA, they have Factory in Mexico.
Billion costs General Motors, Ford and Chrysler
Wells Fargo estimates that 25 percent duties on imports from Mexico and Canada They will cost traditional car manufacturers from Detroit billions of dollars a year. The company estimates the total impact of 5 percent, 10 percent and 25 percent duties on General Motors, Ford Motor and a parent company Chrysler, Stellantiswould amount to $ 13 billion, $ 25 billion and $ 56 billion, respectively.
More and more expensive cars
S&P Global Mobility estimates that 25 percent duty For a vehicle worth $ 25,000 from Canada or Mexico, it would raise its price by $ 6,250. Some of this amount would probably have to be covered by the final American buyer.
American cars produced in Mexico
S&P Mobility reports that Factory in Canada and Mexico They produce about 5.3 million vehicles, of which about 70 percent, almost 4 million, goes to the USA from Mexico every year. Ford, GM, Stellantis, Toyota Motor and Honda They produced in Canada according to estimates only 1.3 million cars in 2024, mainly on the American market.
Who will suffer the most on Trump’s tariffs?
Some of these car manufacturers are also largely relying on production in Mexicobut not all manufacturers would have to face the same problems. Dutch imposed on imports from Mexico will have the greatest impact on the German car manufacturer Volkswagen. They will also affect Nissan Motor and Stellantis, says S&P Global Mobility.
Here are car manufacturers who are most exposed to Dutch for vehicles imported from Mexicobased on the percentage of their sales in the USA for production south of the border:
- Volkswagen: 43 percent
- Nissan: 27 percent
- Stellantis: 23 percent
- GM: 22 percent
- Ford: 15 percent
- Honda: 13 percent
- Toyota: 8 percent
- Hyundai: 8 percent
