- Car makers will not be evenly affected by President Trump’s definitions against Mexico and Canada.
- Some American companies rely heavily on Mexico or Canada to produce and import their cars.
- Even those who have a strong presence in the United States, such as Tesla and Rivian, will still feel the effects.
For American auto companies, the consequences of President Donald Trump’s tariff are likely to be unavoidable, even for those who have a strong manufacturing presence in the United States, such as Ford, Rivian and Tesla.
A 25 % tax will affect the goods received from Canada and Mexico on almost all auto makers in the United States because they have reached their partners in North America not only for large tasks such as collecting vehicles but also for smaller components such as engines, seats, seats, wires.
The effects will not even be in all fields.
General Motors, for example, can feel more blow From Trump’s tariff from others. In 2024, General Motors produced nearly 900,000 cars in Mexico, according to Statista data.
Moderation Chevrolet is assembled in Mexico.
Chevrolet
Mary Barra, CEO of General Motors, said in a profit call in January that the auto manufacturer has measures that can be taken to alleviate the effects of definitions, partly by looking towards its other international sources.
“There are plays that we can do in this perspective to reduce the effect if there is a tariff either on Canada or Mexico,” Para said at the time.
A GM spokesman did not respond to the request for comment.
American car makers
Even companies that manufacture most of their cars, if not all, will have their cars in the United States to develop a strategy on reducing the costs of definitions.
The final assembly of Teslas, for example, occurs in the United States. However, a presentation from the National Traffic Safety Administration on highways shows that between 20 % and 25 % of the components of Tesla 2025 for the year 2025 come from Mexico.
“There is a lot of uncertainty about the customs tariff,” said Veephaf Taniga, the financial manager of Tesla in a profit call on January 29. From all over the world for all our business.
Rivian, an EV, is based in southern California, produces small trucks and four -wheel drive vehicles in Illinois, with another Georgia Building Factory.
However, RJ Scaring CEO realized the importance of Mexico in the American auto industry during a round table with correspondents in January. He also said that the company is preparing for definitions from the Trump administration.
“The unique auto industry, depends on Mexico as a source of many of our supply chain. This has been somewhat built over several decades,” he said.
Vidia Rajoopalan, SVP in Rivian, said that the components of the electronic control unit in Rivian, which operate the various program functions of the program, from Mexico and Taiwan.
Lloyd Li/Business Insider
Vidya Rajagopalaan, the first vice president of Rivian Electrical appliances, told correspondents during a tour of the company’s Palo Alto office Contracting manufacturers were not “asleep” and they will start increasing sources in Vietnam or other countries that are not imposed on definitions.
Tesla and Rivian speakers did not respond to the comment.
Ford may not feel the effects of Trump’s tariff as much as its old counterpart, GM, although it also produces some of its cars in Canada and Mexico. Bronco Sport, MAVERICK and Mustang Mach-E South border are assembled. The company announced last year that it will collect the F-Series Super Duty trucks in Ontario, Canada, starting in 2026.
At the Barclays World Motor and Technology Conference in November, Ford John Loler’s financial manager said the car maker is the “first product in the United States”, but the effects of definitions will be unconfirmed.
“Remember, four years have passed,” Luller said at that time, and it seems that he indicates the length of Trump’s second period, “We do not know how it will be,” Luller said at the time.
Ford spokesman did not respond to a request for comment.
