On January 30 (Reuters) reported that U.S. President Donald Trump intends to impose 25% tariffs on imports from Mexico and Canada from February 1 if they fail to halt the flow of fentanyl into the United States.
According to the Mexican Automotive Manufacturers' Association (AMIA) and the Canadian Vehicle Manufacturers' Association, about 90% of auto exports from both Mexico and Canada go to the U.S.
The German automakers, particularly Volkswagen, have criticized the tariffs, warning of potential consumer inflation.
Here's a detailed rundown of the automakers affected, listed alphabetically:
- Volkswagen's Audi plant in San Jose Chiapa, Mexico, manufactures the Q5, employing over 5,000 individuals. In 2023, the plant produced nearly 176,000 cars, with almost 40,000 exported to the U.S. in the first half of 2024.
- BMW's plant in San Luis Potosi, Mexico, produces various models, with future plans to introduce the all-electric Neue Klasse model line starting in 2027.
- Ford operates three plants in Mexico, exporting just under 196,000 cars to North America in the first half of 2024, with 90% destined for the U.S.
- General Motors imports approximately 750,000 vehicles from Canada or Mexico to the U.S. in 2024, including popular models like the Chevy Silverado and GMC Sierra.
- Honda Motor sends 80% of its production from Mexico to the U.S. market.
- South Korea's Kia Corp manufactures vehicles in Mexico, including models for Hyundai Motor for export to the U.S.
- Toyota Motor produces its Tacoma pick-up truck in Mexico.
- Volkswagen's factory in Puebla, Mexico, is a significant production site for cars exported to the U.S. In Canada, Volkswagen is constructing a battery gigafactory with production scheduled to commence in 2027.
Additionally:
- Sweden's Autoliv employs around 15,000 staff in Mexico. - Tyre maker Michelin has plants in Mexico and Canada. - Chinese seat maker Yanfeng Automotive Interiors supplies various automakers from its plants in Mexico. - Other part makers with operations in Mexico include Pirelli, Brembo, and Eurogroup Laminations, the latter specializing in components for electric motors and generators.
Furthermore, U.S. automaker Tesla encouraged its Chinese suppliers to establish plants in Mexico in 2023, with plans to start operations in early 2025.