U.S. President Donald Trump has pledged to place 25% tariffs on imports from Mexico and Canada from Feb. 1 if the two countries are not judged to be doing enough to stop the flow of fentanyl into the United States.
Around 90% of auto exports from both Mexico and Canada go to the U.S., according to the Mexican Automotive Manufacturers' Association (AMIA) and the Canadian Vehicle Manufacturers' Association.
German automakers, of which Volkswagen would be most affected, have warned against the tariffs, saying they would cause inflation for consumers.
Here are the automakers that would be affected, in alphabetical order:
AUDI
BMW
FORD
It exported just under 196,000 cars from Mexico to North America in the first half of 2024, with 90% of vehicles going to the U.S., according to Mexico's AMIA.
In Canada, it has an assembly plant in Oakville where it plans to produce a larger, gas-powered F-Series pickup truck from 2026. GENERAL MOTORS GM (GM.N) imported roughly 750,000 vehicles from Canada or Mexico in 2024 to the U.S., with most manufactured in Mexico, according to business analytics firm GlobalData.
They include some of GM’s most popular vehicles, including the Chevy Silverado, GMC Sierra full-sized pickups, and mid-sized SUVs.
GM's Mexican plants also build two of its critical new electric vehicles, battery-powered versions of its Equinox and Blazer SUVs.
In Canada, GM operates three plants, producing electric vans, the Chevrolet Silverado Heavy Duty truck, and the V8 engine and dual clutch transmission for shipment worldwide.
HONDA MOTOR
Honda Motor (7267.T) sends 80% of its Mexican output to the U.S. market. It warned on Nov. 6 that it would have to consider shifting production if the U.S. imposed permanent tariffs on Mexican imports.
JAC MOTORS
JAC Motors (600418.SS) assembles JAC brand vehicles via a joint venture with Mexican firm Giant Motors.
KIA CORP
South Korea's Kia Corp (000270.KS) has a factory in Mexico that makes its own vehicles and some Santa Fe SUVs for its affiliate Hyundai Motor (005380.KS) for export to the United States.
MAZDA
NISSAN MOTOR
STELLANTIS
The Franco-Italian-American group also owns two assembly plants in Ontario, Canada: Windsor, where it makes Chrysler models, and Brampton, currently under retooling and scheduled to resume production in 2025 with a new Jeep model.
TOYOTA MOTOR
VOLKSWAGEN
Volkswagen's factory in Puebla is the largest auto plant in Mexico and one of the largest in the Volkswagen Group, according to the carmaker's website. Nearly 350,000 cars were made there in 2023, including the Jetta, Tiguan and Taos, all for export to the U.S.
In Canada, Volkswagen is building a battery gigafactory in St. Thomas, Ontario, investing up to C$7 billion ($4.9 billion) with a view to use the batteries for cars it sells in North America. Production is expected to begin by 2027.
AUTO SUPPLIERS
AUTOLIV
Sweden's Autoliv , the world's largest maker of airbags and seat belts, said it employs around 15,000 staff in Mexico.
MICHELIN
Tyre maker Michelin (MICP.PA) has two plants in Mexico - Queretaro and Leon - and three in Canada: Pictou, Bridgewater and Waterville.
YANFENG
Chinese seat maker Yanfeng Automotive Interiors supplies automakers including General Motors and Toyota from its plants in Mexico.
OTHERS
Other part makers with plants in Mexico serving automotive production for the U.S. market include Italian tyremaker Pirelli (PIRC.MI), Italian premium brakes maker Brembo (BRBI.MI) and Italy's Eurogroup Laminations (EGLA.MI).
Eurogroup Laminations, which counts Tesla (TSLA.O) among its clients, specialises in stators and rotors, two key components of electric motors and generators.
U.S. automaker Tesla encouraged its Chinese suppliers to set up plants in Mexico in 2023 to supply the factory it was planning to build in the country from early 2025, but its plans have not materialised.
($1 = 1.4408 Canadian dollars)
