5 Car Brands That Could Be Affected by Trump’s Proposed Tariffs
Written by
David Nadelle
Edited by
Amber Barkley
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After months of promising tough action to combat migration and fentanyl trafficking from Canada and Mexico, as well as threatening to impose taxes on imported goods from a host of other countries around the world, tariffs were conspicuously absent from President Donald Trump’s day one flurry of executive orders. Following Inauguration Day, 25% tariffs on imports from Canada and Mexico were announced, then paused, leaving the question of whether they will ultimately be imposed unanswered.
However, while start dates and specifics aren’t yet known, Americans can expect tariff mandates to start rolling out as the new administration continues to gather data and fine-tune fee structures. In the meantime, it’s best to prepare for potential price increases.
How Tariffs Could Affect Vehicle Prices
According to Peter Navarro, White House senior counselor for trade and manufacturing, putting new tariff rules in place will happen “‘in Trump time,’ which is to say as quickly as possible on behalf of our economic and national security,” NBC News reported.
In an address to House Republicans on Jan. 27, Trump narrowed tariff talk to pharmaceuticals and medicines, semiconductors and other electronic components, plus “steel and some other industries.” However, according to CNN, federal trade data from the Commerce Department show the top category of products goods imported to the U.S. through November 2024 was motor vehicles, which will be severely impacted once tariffs take effect.
As CNN reported, every “Made in USA” passenger vehicle — 10.2 million were assembled in the U.S. in 2024 — is built with Mexican and Canadian parts. With Canadian and Mexican governments promising retaliatory action if Trump imposes duties on imports, automakers and dealerships are going to have to prepare for potential car inventory and parts supply shortages or possibly production shutdowns and job losses similar to what happened during the COVID-19 pandemic.
A tariff standoff with Canada and Mexico could lead to repercussions felt within every industry segment and could increase the cost for new vehicles, which are already beyond what many Americans can afford. A price hike of $3,000 for the average car seems to be the consensus among industry analysts, according to MarketWatch.
Here is a roundup of some car brands that could be affected immediately by Trump’s expected tariff agenda.
Stellantis
The multinational auto giant owns 14 brands, including Chrysler, Dodge, Jeep and RAM. It also sources vehicles and operates many plants north and south of the U.S., according to Car and Driver.
Its Windsor, Ontario plant produces the Dodge Charger and Chrysler Pacifica and Voyager, and its Saltillo and Toluca facilities build RAM HD pickups and ProMaster vans, and Jeep Compass and Wagoneer S electric SUVs, respectively.
Volkswagen
According to Volkswagen de México, its Puebla plant is one of the largest factories operated by the Volkswagen Group and is the largest automobile factory in Mexico, exporting Jetta, Taos and Tiguan models. Silao’s VW engine plant has a capacity of more than 2,500 engines per day and assembled over 430,000 engines in 2023 for distribution in North America.
General Motors
As The New York Times reported, General Motors (GM) has been drawing up strategies in anticipation of Trump tariff intentions. While the company won’t reveal what is in its “extensive playbook,” GM produced more vehicles — almost 900,000 — in Mexico in 2024 than any other brand. Pickup trucks like the Chevrolet Silverado and GMC Sierra are built in Mexican plants in Ramos, as is the Chevy Equinox SUV.
Some Silverados come from down from Oshawa, Ontario, too.
Ford
Hermosillo, in northwestern Mexico, is home to a Ford plant that builds the Bronco Sport and the Maverick, while the increasingly popular Mustang Mach-E is made just north of Mexico City, in Cuautitlán Izcalli, per Car and Driver.
Toyota
Every popular foreign automaker, from Honda to Mazda, BMW to Mercedes, has a production presence in Mexico and Canada. Toyota, the world’s biggest automaker for the fifth year in a row, according to Motor1.com, cranked out more than 230,000 Tacoma pickups from two Mexican plants in 2023, per Reuters.
Additionally, according to Car and Driver, its Woodstock and Cambridge, Ontario factories are responsible for many of the RAV4 and Lexus RX and NX SUVs driving on American roads every day.
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