Almost all auto companies will feel a pellet from the new definitions imposed by President Trump on Saturday on the goods imported from Canada, Mexico and China.
Car manufacturers shipping tens of billions of cars of cars, engines, transportation and other components every week across the United States borders with Canada and Mexico. Billions of dollars are imported more than spare parts manufacturers in China.
The customs duties, which will enter at 12:01 am on Tuesday, will raise the prices that American consumers pay against new cars. The definitions come at a time when new cars and trucks are already selling for standard prices.
General Motors, the largest American car industry company, may be more affected.
General Motors produce many vehicles in Mexico more than any other manufacturer-more than 842,000 in 2024, according to Marklines, auto industry provider. Some of these vehicles are the most important in the company’s assortment.
All moderate Chevrolet and Sports Chevrolet compounds sell GM in the United States come from Mexico. The Chevrolet Silvrado Beck App, a selling model, and the similar GMC Sierra Pickup, generates huge profits for the company. Of more than a million of those trucks built last year, nearly half of them were produced in Canadian and Mexican plants, and data from Marklines appears.
Finally, the General Motors factories in Canada and Mexico produced nearly 40 percent of all the company’s vehicles last year in North America, the region where it gets most of its revenues and almost all its profits.
Many other auto manufacturers, including Stellantis, Toyota and Honda, make about 40 percent of their cars and trucks in North America in Canada and Mexico, but they produce lower vehicles than General Motors, so most of the auto companies may not feel the effect of customs tariffs Like General Motors
“The definitions pose a very great threat to manufacturers and cars manufacturing states,” said Patrick Anderson, CEO of Anderson Economic Group, a consulting company based in Michigan. “It is clear that General Motors is more at risk than most automobile companies due to the manufacturing emissions in North America.”
Mr. Anderson said that the most urgent effect of definitions is delay and confusion in border crossings, as customs agents, trucks and ports try to determine how to deal with vehicles and parts already on trucks and trains that go to borders.
It was estimated that the definitions can add 10,000 dollars or more to the trucks and other large vehicles that are shipped to the United States from Canada and Mexico. “It is a lot, at least in the short term, customers and car dealers will absorb them,” he said.
He added that the manufacturers will have to search for ways to change production and control it to avoid or reduce the burden of definitions.
A few car manufacturers talked about President Trump’s plans. Co -executive officials admitted that they were reluctant to say anything objective about the customs tariff because they do not want Mr. Trump’s anger and invite revenge against him, his aides and other federal officials.
The pressure group representing the three auto companies in Detroit, the US Automobile Policy Council, issued a statement that the vehicles and parts that comply with the rules of local and regional content of the United States, Mexico and Cananga Convention should be exempt from customs tariffs.
“American auto manufacturers, who have invested billions of dollars in the United States to meet these requirements, should not be undermined by their competitiveness undermined by the customs tariff that will raise the cost of building vehicles in the United States and install them in the American Labor Force,” Matt Blant, President, President The group said.
“The car industry in North America is very integrated and that the tariff imposition will necessarily be harmful to American jobs, investment and consumers,” said Jennifer Evenefian, President and President of Autos Drive America, a pressure group that represents foreign car manufacturers with operations in the United States.
General Motors has looked at several steps you may take to alleviate the impact of definitions, such as increasing the production of captured trucks in the United States, and the use of its Canadian and Mexican factories to export cars to countries outside North America.
Mary TT Barra, CEO of the company, CEO of the company, Mary T. said. Bara, last week at a phone conference to discuss the financial results of 2024 at General Motors: “We are planning and we have many cranes that we can withdraw.”
Mark Wakefield, Global Automotive Market alixpartnersA consulting company, which said the definitions can lead to job losses in auto and auto parts factories throughout North America while manufacturers are scrambling to respond.
He said: “North America has already been dealt with as one markets by the auto industry for decades now.” “You will likely see prices rise and sales decrease. Less number of vehicles will need to be built.”
Linda Hasinfars, CEO of Lynamar auto parts, said in a statement to the New York Times that the auto industry will face to absorb the cost of definitions or transfer production to avoid them.
“If 10 percent or 25 percent of the customs tariffs are imposed on car parts that cross the border, I think we will quickly stop making vehicles in North America,” said Ms. Hasinfars. “Car spare parts are very engineering products that require months or years for the tool and check and test them before they are built into a vehicle. They cannot be simply replaced overnight.”
Stelantis, which owns Chryler, Dodge, Jeep and RAM, produced both Minives Chryler Pacifica at Windsor Factory, Ontario. It also makes the Dodge Charger Muscle, including a new electric version there. About two -thirds of Beck App is manufactured very profitable in the United States, but the other third comes from a factory in Sallalo, Mexico.
Upon requesting a comment, Stelantis referred to the statement made by the US Automobile Policy Council.
Toyota and Honda depend heavily on Canada from other manufacturers. Both make more than a million vehicles annually in North America, and the northern border plants represent more than a quarter.
Toyota makes some RAV4 SUVs in the United States, but most of them come from plants in Woodstock and Cambridge, Ontario. The company also makes Lexus SUVs in Ontario. Honda is in a similar position with CIVIC SEDAN and CR-V SUV-mostly made in Alliston, Ontario.
Definitions create a link to some companies that do not contain many plants in North America. Three of the best-selling Volkswagen cars in the United States-Geta Sedan, Taos and Tiguan Suvs-made in Mexico. The company has one factory in the United States, in Catanoja, Tin, where other SUVs are made in 2024, Volkswagen sold more than 230,000 Mexican vehicles in the United States, about 70 percent of its sales in the country, the company said.
“We are still strong defenders for free and fair trade,” Volkswagen said in a statement. “We firmly believe that the open markets were a driving force behind global economic growth and prosperity, enhancing innovation and creating opportunities for companies and societies around the world.”
Like its competitors, Ford Motor produces some major models in Canada and Mexico. It is assembled in its Mustang Mach-E electric, MAVERICK Pickup and Bronco Sport, a built-in sporty vehicle, in Mexico. The company’s only car assembly factory in Canada was shown in May, although it still made engines in two manufacturers in Windsor.
But Ford is less likely than most. It has made approximately 2.5 million cars in North America last year, and more than 82 percent set off from American assembly lines. All medium -sized and distincts in the margin are manufactured locally. Only 2 percent of its production came from Canada and 16 percent of Mexico.
“Ford is the most committed to building in America among the main auto manufacturers,” the company said in a statement in late November in late November, in reference to the reason for its decrease in the field of automobile companies after Mr. Trump’s election.
Ian Austin The reports contributed.
