President Trump's 25% tariffs on imports from Canada and Mexico pose a significant threat to North American automakers, potentially leading to a $3,000 increase in vehicle prices, according to Wolfe Research analysts.
The tariffs are expected to impact nearly a quarter of the 16 million vehicles sold in the U.S. annually, disrupting a $225 billion import market, as indicated by AlixPartners.
General Motors has indicated it will only relocate production if it demonstrates long-term viability. Meanwhile, Mexican automakers have proactively increased imports of components and vehicles to minimize the repercussions.
In response, the Canadian government has imposed 25% tariffs on $155 billion of U.S. goods, sparking concerns about job losses in the auto industry, especially in Ontario, as expressed by Ontario Premier Doug Ford.