Donald Trump’s tariffs target major automakers: Audi, BMW, and Toyota brace for impact

US President Donald Trump confirmed that tariffs on imports from Canada and Mexico will be implemented on Tuesday, ruling out the possibility of last-minute agreements.

The proposed tariffs on Canada and Mexico are set to take effect on Tuesday, with President Trump deciding whether they will be imposed at the proposed rate of 25%, according to Commerce Secretary Howard Lutnick, Reuters reported.

Here are the automakers and other companies that may be impacted by the tariffs:

Audi

Volkswagen's Audi plant in San Jose Chiapa, Mexico, manufactures the Q5 and employs over 5,000 people. Nearly 40,000 vehicles were exported to the U.S. in the first half of 2024, according to Mexico's AMIA.

BMW

BMW's facility in San Luis Potosi, Mexico, produces the 3 Series, 2 Series Coupe, and M2, with almost all output being exported to the U.S. and other global markets.

Also Read: ‘Who will defend Canadian land if US expands northward?’ Russia hits back at Canada’s idea of sending troops to Ukraine

Ford

Ford operates three plants in Mexico and exported nearly 196,000 vehicles to North America in the first half of 2024, with 90% of those cars heading to the U.S., according to Mexico's AMIA.

General Motors

GM imported around 750,000 vehicles from Canada and Mexico to the U.S. in 2024, with the majority manufactured in Mexico. These include the Chevy Silverado, GMC Sierra pickups, and mid-sized SUVs. Mexican plants also produce two of GM's new electric vehicles. GM's three Canadian plants manufacture electric vans, the Chevrolet Silverado Heavy Duty truck, and the V8 engine and dual-clutch transmission, Reuters reported.

Also Read: Canadian dollar hits one-month low as tariff deadline confirmed

Honda Motor 

Honda sends 80% of its Mexican output to the U.S. market. On November 6, the company warned it might shift production if the U.S. imposes permanent tariffs on Mexican imports, Reuters reported.

JAC Motors

JAC Motors assembles vehicles in Mexico through a joint venture with Mexican company Giant Motors.

Kia Corp

Kia Corp operates a plant in Mexico that manufactures its own vehicles and some Santa Fe SUVs for its affiliate Hyundai Motor for export to the U.S.

Also Read: Donald Trump’s tariff war may trigger retaliatory impact as Canada responds: US auto buyers, consumers to take a hit

Mazda

Mazda exported about 120,000 vehicles from Mexico to the U.S. in 2023, but stated it may reconsider further investments if tariffs are imposed.

Nissan Motor

Nissan operates two plants in Mexico, producing the Sentra, Versa, and Kicks models for the U.S. market. In the first nine months of 2024, it produced nearly 505,000 vehicles in Mexico, as reported by Reuters.

Stellantis

Stellantis runs assembly plants in Mexico that produce Ram pickups, vans, and the Jeep Compass SUV. The company owns two assembly plants in Canada, one making Chrysler models and another set to resume production of a new Jeep model this year.

Toyota Motor 

Toyota builds its Tacoma pickup truck at two plants in Mexico. The company sold over 230,000 of these trucks in the U.S. in 2023, accounting for 10% of total sales in the U.S. market.

Volkswagen

Volkswagen's factory in Puebla, Mexico, produced nearly 350,000 cars in 2023, including the Jetta, Tiguan, and Taos, all for export to the U.S. Volkswagen is also building a battery gigafactory in Ontario, Canada, with production set to begin by 2027.

Auto Suppliers

Autoliv: Sweden's Autoliv, the world's largest maker of airbags and seat belts, employs around 15,000 people in Mexico.

Michelin: Michelin operates two plants in Mexico (Queretaro and Leon) and three in Canada.

Also Read: Justin Trudeau visits King Charles amid Donald Trump’s annexation threat: ‘Canada’s sovereign and independent future…’

Yanfeng: The Chinese seat maker Yanfeng Automotive Interiors supplies automakers including General Motors and Toyota from its Mexican plants.

Others: Other suppliers with plants in Mexico include Italian tire maker Pirelli, premium brake maker Brembo, and Eurogroup Laminations.

Others

Tesla encouraged its Chinese suppliers to set up plants in Mexico in 2023 to supply its upcoming factory in the country, but these plans have yet to materialise.

(With inputs from Reuters)