Republican presidential hopeful Donald Trump expressed over the weekend that if elected to serve a second term in the White House, he’ll impose a tariff as high as 200 percent on cars and trucks imported to the United States from Mexico. “We’ll put a tariff of 200 percent on if we have to,” Trump said during a stump speech at a rally in Juneau, Wisconsin, according to Reuters. “We’re not going to let it happen. We’re not letting those cars come into the United States.” Trump’s Democrat opponent, Vice President Kamala Harris, has made no such threat of additional tariffs on Mexico.
President Trump has previously pledged a 100-percent tariff on imported cars, but he’s considering doubling that number, likely to appeal to the American Midwest’s manufacturing sector. It’s unclear whether this proposed tariff would apply to all vehicles imported from Mexico or if domestic automakers would be exempt.
In previous speeches, including at the 2024 Republican National Convention, Trump has called out Chinese car companies for their plans to produce cars in Mexico, accusing them of setting their sights on the U.S. market. This rhetoric was likely aimed at BYD, which had plans to build a manufacturing facility in Mexico, but suspended those plans in September while the Chinese automaker awaits the outcome of the U.S. presidential election.
General Motors imports an estimated 60,000-70,000 vehicles from Mexico to the U.S. annually, which accounts for a significant share of the company’s U.S. sales. The Ramos Arizpe plant builds and exports the Chevy Blazer, Chevy Blazer EV, Chevy Equinox EV, Honda Prologue, and Cadillac Optiq. The Silao facility builds the Chevy Silverado 1500 and GMC Sierra 1500, and the San Luis Potosí plant assembles the Chevy Equinox and GMC Terrain.
Trump’s comments come amid aggressive tariffs from the United States, Canada, and the European Union on China. Although no Mexican car companies are trying to sell cars in the U.S., the North American country is becoming a political battleground for the fate of the region’s automotive industry.
Sales decreased 5.6 percent to 16,670 units during the first ten months of 2024.
Specifically critical minerals supply chain development.
Scheduled for a Spring 2025 launch.
Horsepower and grip take the win.
View Comments
Given they passed the USMCA already during his first term which benefited US, Canada, and also Mexico (Mexico saw a massive influx of investment from Canada and US), I don't think this is about GM, Ford, VW, or Toyota building in Mexico to sell in the US. The goal of the USMCA was to be mutually beneficial for the three countries and enable easier trade amongst the three. This is about the Chinese exploiting that loophole to dump in the US market tariff free.
And the fact that BYD is suspending their plans to build the plant until the results of the election (if I am interpreting that correctly) is quite telling. Between this and Doug Demuro reviewing a Han that was given to him by BYD themselves just 2 months after their head of North American operations announced they had no plans to enter the US market due to politics tells me they are absolutely eyeing the US market. But like Trump said. Build them here. You wanted us to play by your rules when entering your market then why shouldn't we expect you to play by ours?
85Zingo,
Once again I agree with you except this time I have no counterpoint; I'm in complete agreement. This is all about the backdoor approach China is obviously planning to flood the US market with $10,000 EVs so as to decimate our auto industry. For far too long, our politicians have not taken China seriously and in many cases, have had an alarmingly cozy relationship with them instead. As a result we've lost tremendous wealth and huge swaths of industry. The American people should have forced the hands of the politicians long ago and put a stop to it. I applaud anyone who is clear-eyed about China, thinking as strategically as they do, and willing to stand tough against them.
And ironically this clown we have in the White House used to preach tariffs, tariffs, tariffs when he was a senator. Now that Trump pushes them, he suddenly is coy stating he's worried about the effects on the middle class 🙄
200%, maybe not. But certainly enough to erase any cost advantage car companies take advantage of in Mexico at the expense of US jobs. At the same time tax breaks should be gives to repatriate jobs to underutilized US plants such as Orion, Fairfax, and Lansing grand River.
Bring back jobs to AMERICA, buy AMERICAN not CHINESE :) Trump will save the country.
His diaper fell out.
Trying to keep out the Chinese from entering via Mexico will only cause major problems from other automakers that build there, trust me. Yet another reason to make this fool finally go away. Forever. I wasn't going to vote for either, but when the new candidate entered, at least it's something.
new candidate=same puppet master
About time. Someone who cares because we all know the company and local politicians don’t. I remember in 2012 one of the local congressmen would come to the golf course I worked at and talk about lordstown with the union guys and how it would close and how they didn’t mind. They turned around in 2019 and blamed Trump for it