I’m a Car Expert: 3 Types of Cars That Could Be Impacted the Most by Trump’s Tariffs
Written by
T. Woods
Edited by
Zuri Anderson
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February began with President Donald Trump instituting his long-promised tariffs on America’s trading partners Canada and Mexico.Â
Tariffs are, essentially, taxes levied upon countries that import goods to the United States, and Trump implemented 25% tariffs on both Canada and Mexico. However, Trump then suspected the tariffs for one month after discussions with Canada’s Prime Minister Justin Trudeau and Mexico’s President Claudia Sheinbaum — but the tariffs might return in 30 days.
If they do, the auto industry could be significantly impacted. Per the Detroit Free Press, 90% of all auto exports from Canada and Mexico are sold to the United States. Tariffs instituted upon these vehicles would force their manufacturers to raise their prices to offset the 25% tariffs, forcing American consumers to pay more the vehicles, which would like lead to fewer car sales.
Fewer car sales would then lead to fewer cars being sent to America in the first place, which would negatively impact car manufacturers in Canada and Mexico, car consumers in America, as well as destabilizing the auto industry overall.
Further, the Detroit Free Press found three car manufacturers that would be almost immediately impacted by the tariffs.
Audi
The Q5 is manufactured by Volkswagen’s Audi plant in San Jose Chiapa, Mexico, producing approximately 176,000 cars annually (with 40,000 of those sent to America in the first half of 2024 alone).
BMW
The BMW plant in San Luis Potasi, Mexico sends nearly all of its vehicles (such as the 3 Series, 2 Series Coupe and M2) to the United States and other markets.
Ford
Ford’s three plants in Mexico (two assembly plants in Cautitlan and Hermosillo, an engine plant in Chihuahua) send just under 200,000 cars to North America in the first half of 2024 alone, and would be significantly impacted by a 25% tariff.
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