{"id":3431,"date":"2025-02-02T01:43:28","date_gmt":"2025-02-02T01:43:28","guid":{"rendered":"https:\/\/site.itshrt.com\/worldnews\/trumps-canada-and-mexico-tariffs-could-hurt-carmakers\/"},"modified":"2025-02-02T01:43:28","modified_gmt":"2025-02-02T01:43:28","slug":"trumps-canada-and-mexico-tariffs-could-hurt-carmakers","status":"publish","type":"post","link":"https:\/\/site.itshrt.com\/worldnews\/trumps-canada-and-mexico-tariffs-could-hurt-carmakers\/","title":{"rendered":"Trump\u2019s Canada and Mexico Tariffs Could Hurt Carmakers"},"content":{"rendered":"<p> <script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-6606220950177433\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- ItShrt World News -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-6606220950177433\"\r\n     data-ad-slot=\"1882483372\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\r\n<br \/>\n<\/p>\n<div data-testid=\"companionColumn-0\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Almost all automakers are going to feel a pinch from the new tariffs imposed by President Trump on Saturday on goods imported from Canada, Mexico and China.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Auto manufacturers ship tens of billions of dollars worth of finished automobiles, engines, transmissions and other components each week across the U.S. borders with Canada and Mexico. Billions of dollars more are imported from parts manufacturers in China.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The tariffs, which will take effect at 12:01 a.m. on Tuesday, are widely expected to raise the prices that American consumers pay for new automobiles. And the tariffs come at a time when new cars and trucks are already selling for near record prices.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">General Motors, the largest U.S. automaker, will probably be most affected.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">G.M. produces many more vehicles in Mexico than any other manufacturer \u2014 over 842,000 in 2024, according to MarkLines, an auto-industry data provider. And some of those vehicles are the most important in the company\u2019s lineup.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-1\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">All of the Chevrolet Equinox and Blazer sport-utility vehicles G.M. sells in the United States come from Mexico. The Chevrolet Silverado pickup truck, a top-selling model, and the similar GMC Sierra pickup generate huge profits for the company. Of the more than one million of those trucks built last year, nearly half were produced in Canadian and Mexican plants, data from MarkLines shows.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">All told, G.M. plants in Canada and Mexico produced nearly 40 percent of all vehicles the company made last year in North America, the region where it gets most of its revenue and almost all of its profits.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Several other automakers, including Stellantis, Toyota and Honda, also make about 40 percent of their North American cars and trucks in Canada and Mexico but they produce fewer vehicles than G.M. So most automakers may not feel the impact of the tariffs as acutely as G.M.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cTariffs are a very, very big threat to manufacturers and to auto manufacturing states,\u201d said Patrick Anderson, chief executive of Anderson Economic Group, a consulting firm based in Michigan. \u201cAnd clearly, G.M. is more vulnerable than most automakers because of the manufacturing footprint it has in North America.\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Mr. Anderson said the most immediate impact of the tariffs will be delays and confusion at the border crossings as customs agents, shippers, and ports try to sort out how to deal with the vehicles and parts that are already on trucks and trains headed for the border.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-2\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">He estimated that the tariffs could add $10,000 or more to trucks and other larger vehicles that are shipped into the United States from Canada and Mexico. \u201cMuch of that, at least in the short term, is going to get absorbed by customers and auto dealers,\u201d he said.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Manufacturers will have to seek ways to shift and adjust production to avoid or limit the burden of the tariffs, he added.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Few automakers have spoken out about President Trump\u2019s plans. Auto executives have acknowledged that they are hesitant to say anything substantive about tariffs because they don\u2019t want to anger Mr. Trump and invite retribution from him, his aides and other federal officials.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The lobbying group representing the three Detroit automakers, the American Automotive Policy Council, issued a statement, saying that vehicles and parts that comply domestic and regional content rules of the United States-Mexico-Canada Agreement should be exempt from tariffs.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cOur American automakers, who invested billions in the U.S. to meet these requirements, should not have their competitiveness undermined by tariffs that will raise the cost of building vehicles in the United States and stymie investment in the American work force,\u201d Matt Blunt, president of the group, said.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-3\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Jennifer Safavian, the president and chief executive of Autos Drive America, a lobbying group representing foreign-owned automakers with operations in the United States, said in a statement that \u201cthe North American auto industry is highly integrated and the imposition of tariffs will be detrimental to American jobs, investment and consumers.\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">G.M. has been looking at several steps it could take to soften the impact of tariffs, such as increasing pickup truck production in the United States, and using its Canadian and Mexican factories to export vehicles to countries outside North America.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cWe\u2019re doing the planning and have several levers that we can pull,\u201d the company\u2019s chief executive, Mary T. Barra, said this past week in a conference call to discuss G.M.\u2019s 2024 financial results.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-4\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Mark Wakefield, global automotive market lead at <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2025\/02\/01\/business\/economy\/javascript:void(0);\" title=\"AlixPartners\" rel=\"noopener noreferrer\" target=\"_blank\">AlixPartners<\/a>, a consulting firm, said tariffs could lead to job losses at auto and auto parts factories across North America as manufacturers scramble to respond.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-5\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">\u201cNorth America has really been treated as one market by the auto industry for decades now,\u201d he said. \u201cYou\u2019re likely to see prices go up and sales go down. Fewer vehicles would need to be built.\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The auto industry will struggle to absorb the cost of the tariffs or to move production to avoid them, Linda Hasenfratz, the executive chairwoman of the auto parts company Linamar, said in a statement to The New York Times.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cIf 10 percent or 25 percent tariffs are imposed on auto parts crossing the border, I think we will pretty quickly stop making vehicles in North America,\u201d Ms. Hasenfratz, said. \u201cAuto parts are highly engineered products requiring months or years to tool up, validate and test before being built into a vehicle. They simply can\u2019t be substituted overnight.\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Stellantis, which owns Chrysler, Dodge, Jeep and Ram, produces all of its Chrysler Pacifica minivans at a plant in Windsor, Ontario. It also makes the Dodge Charger muscle car, including a new electric version, there. About two-thirds of its highly profitable Ram pickups are made in the United States, but the other third comes from a factory in Saltillo, Mexico.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Stellantis did not respond to a request for comment.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Toyota and Honda rely more heavily on Canada than other manufacturers. Both make more than a million vehicles a year in North America, and plants north of the border account for over a quarter of that.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-6\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Toyota makes some RAV4 S.U.V.s in the United States but most come from plants in Woodstock and Cambridge, Ontario. The company also makes Lexus S.U.V.s in Ontario. Honda is in a similar position with its Civic sedan and CR-V S.U.V. \u2014 most are made in Alliston, Ontario.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The tariffs create a bind for some companies that do not have many plants in North America. Three of Volkswagen\u2019s top-selling vehicles in the United States \u2014 the Jetta sedan and the Taos and Tiguan S.U.V.s \u2014 are made in Mexico. The company has one factory in the United States, in Chattanooga, Tenn., where it makes other S.U.V.s. In 2024, Volkswagen sold more than 230,000 Mexican-made vehicles in the United States, about 70 percent of its sales in the country, the company said.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cWe remain a strong advocate for free and fair trade,\u201d Volkswagen said in a statement. \u201cWe firmly believe that open markets have been a driving force behind global economic growth and prosperity, fostering innovation and creating opportunities for businesses and communities worldwide.\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Like its rivals, Ford Motor produces some key models in Canada and Mexico. Its electric Mustang Mach-E, Maverick pickup and Bronco Sport, a compact sport-utility vehicle, are assembled in Mexico. The company\u2019s only car assembly plant in Canada was idled in May though it still makes engines at two plants in Windsor.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">But Ford is less exposed than most. It made nearly 2.5 million vehicles in North America last year, and more than 82 percent rolled off U.S. assembly lines. All of its high-margin medium- and full-size pickups are made domestically. Only 2 percent of its production came from Canada and 16 percent from Mexico.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cFord is the most committed to building in America among the major automakers,\u201d the company said in a statement in late November in reference to why its stock had fallen less than other automakers after Mr. Trump\u2019s election.<\/p>\n<p class=\"css-798hid etfikam0\">Ian Austen<!-- --> contributed reporting.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<p><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-6606220950177433\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- ItShrt World News -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-6606220950177433\"\r\n     data-ad-slot=\"1882483372\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\r\n<br \/>\n<br \/><a href=\"https:\/\/www.nytimes.com\/2025\/02\/01\/business\/economy\/tariffs-trump-automakers-canada-mexico.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Almost all automakers are going to feel a pinch from the new tariffs imposed by President Trump on Saturday on<\/p>\n","protected":false},"author":1,"featured_media":3432,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39],"tags":[332,878,754,239,114,335,1479,877,1484,338,1071,1483,879,413,1485,132,751,876,1480,1481,113,168,1332,109,1482],"class_list":["post-3431","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology","tag-automobiles","tag-barra","tag-canada","tag-customs-tariff","tag-donald-j","tag-factories-and-manufacturing","tag-ford-motor-co","tag-general-motors","tag-honda-motor-co-ltd","tag-international-trade-and-world-market","tag-layoffs-and-job-reductions","tag-linamar-corporation","tag-mary-t","tag-mexico","tag-ontario-canada","tag-presidential-election-of-2024","tag-protectionism-trade","tag-sports-utility-vehicles-and-light-trucks","tag-stellantis-nv","tag-toyota-motor-corp","tag-trump","tag-united-states","tag-united-states-economy","tag-united-states-international-relations","tag-volkswagen-ag"],"yoast_head":"<!-- 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