On Jan 21, U.S. President Trump announced the possibility of imposing 25% tariffs on Canada and Mexico starting on Feb. 1. This led to a decline in the stock prices of several Asian automakers and battery firms on Tuesday.
Listed below are companies organized by sector in alphabetical order that could be impacted by the proposed tariffs:
1. Volkswagen: Produces the Q5 at its Audi plant in San Jose Chiapa, Mexico. The plant employs over 5,000 people and manufactured nearly 176,000 cars in 2023, with close to 40,000 cars exported to the U.S. in the first half of 2024.
2. BMW: Its San Luis Potosi plant in Mexico produces the 3 Series, 2 Series Coupe, M2, and will introduce the all-electric "Neue Klasse" model line starting in 2027.
3. BYD: The Chinese EV maker is looking to establish a plant in Mexico solely for the domestic market.
4. Honda Motor: Sends 80% of its Mexican output to the U.S. market, and its COO Shinji Aoyama indicated a potential production shift if permanent tariffs are imposed on Mexican imports.
5. JAC Motors: Established a joint venture in Mexico with Giant Motors in 2017 to assemble JAC brand vehicles.
6. Kia Corp: Operates a Mexican factory producing vehicles for both its brand and a few Tucson SUVs for affiliate Hyundai Motor destined for the U.S.
7. Mazda: Produced around 209,000 vehicles in Mexico in 2024, exporting approximately 60% of them to the U.S.
8. Nissan Motor: Operates two plants in Mexico manufacturing models like Sentra, Versa, and Kicks primarily for the U.S. market.
9. Stellantis: Manages assembly plants in Mexico and Canada, producing various models like Ram pick-ups and Jeeps.
10. Toyota Motor: Builds Tacoma pick-up trucks in Mexico, with all U.S. sales of this model sourced from Mexican plants.
11. Volkswagen: Its Puebla factory is one of the largest auto plants in Mexico, producing models such as the Jetta, Tiguan, and Taos for export to the U.S.
12. Autoliv: The world's largest airbag and seat belt manufacturer with sizable operations in Mexico.
13. Michelin: Operates plants in Mexico and Canada producing tires.
14. Yanfeng Automotive Interiors: A Chinese seat manufacturer with a presence in Mexico supplying major automakers.
15. Pirelli, Brembo, and Eurogroup Laminations: Italian auto parts makers with facilities in Mexico serving U.S. automotive production needs.
16. Foxconn: Building an AI server factory with Nvidia in Mexico.
17. Lenovo: Produces servers and data center products in Monterrey, Mexico for the North American market.
18. LG Electronics: Manufactures TVs, home appliances, and EV parts in Mexico.
19. Samsung Electronics: Produces TVs and home appliances in Mexico for export to the U.S.
20. Campari: Operates production sites in Mexico and Canada focusing on spirits like tequila and Canadian whisky.
21. Procter & Gamble, Unilever, Pepsico, Lay's: Consumer goods companies invested in Mexican supply chains and facing potential impacts from tariffs.
The text highlights the impact of potential tariffs on various companies across different sectors due to the proposed U.S. policy changes towards Mexico and Canada.