Americans looking to buy U.S.-made GM vehicles could wind up paying $2,100 more on average as a result of the plans by President-elect Donald Trump to slap a 25-percent tariff on automotive components imported from Canada and Mexico, Wells Fargo analysts say.
According to Fortune, the Wells Fargo analysts say GM and Stellantis will feel the effects of Trump’s tariffs most strongly because they “bear the most [Mexican] exposure” out of the Big Three automakers.
Trump plans to use the tariffs as a lever in negotiations to push Canada and Mexico toward reducing the flow of drugs such as fentanyl and illegal immigrants across America’s borders, based on his recent social media posts. Because of this, Wells Fargo also notes that GM and other automakers will be exposed to “lower risk if border issues can be addressed.”
Prices for U.S.-made automobiles could rise as much as $2,100 per vehicle if the tariffs are enacted, the bank claims. With auto market margins at 9 percent and 16 percent of American vehicle imports arriving from the two countries targeted by Trump’s plans, “it would be difficult to offset 25-percent tariff without raising [the] price.”
Vehicles assembled completely in Canada and Mexico might cost as much as $8,000 to $10,000 more once the tariffs are in place, per Wells Fargo. These include General Motors models such as the Chevy Blazer EV produced at the GM Ramos Arizpe plant, the Chevy Equinox built at the GM San Luis Potosí plant and the Chevy Silverado 1500 built at the GM Silao plant, with all three factories located in Mexico.
The chief executive of research firm Anderson Economic Group, Patrick Anderson, described the situation as “a two-alarm fire for the auto industry.” He continued, “there is probably not a single assembly plant in Michigan, Ohio, Illinois and Texas that would not immediately be affected by a 25-percent tariff.”
Wells Fargo says that it sees “$5 billion to $9 billion in EBIT risk for the [Detroit Three],” cutting sharply into their profits. Trump also plans to add a further 10-percent tariff to Chinese auto imports on top of the 100-percent EV tariff outgoing President Joe Biden already imposed.
Comments
Bad hombres gonna ruin us
Whatever Trump touches dies.
We heard the same BS back in 2016. And nothing went up in price. It wasn’t until 2020 when dems and other global hard-left leaning tyrants started locking down their economies did we start seeing the near hyperinflation levels of prices. So cry me a river. Start reconsidering your supply chains because nobody will be buying overpriced cars anymore when we can barely afford groceries and high interest rates thanks to consequences from the handling of the events of 2020 and endless money throwing at a forcefully stalled economy.
In any case I don’t think these tariffs on Mexico will stand for long as it seems focused as being only a negotiation tactic for this immigration crisis. The tariffs which will probably stick around will be focused on China which Biden already kept from the previous Trump presidency and added some of his own (despite all the crying of how damaging Trumps tariffs will be).
I Hear you.
Exactly! And weren’t we told WW3 was going to break out? And in 2020, weren’t we told the world was going to heal with Brandon? Course now not only are close to WW3, we’re almost as close to nuclear war as we were in the Cuban missle crisis.
Everything these egghead’s has said has been 100% wrong, and often the opposite is true. Who want to bet me that cars actually cost less by an average of 2-3K by this time next yea
They will have to, because no one will have a job.
I’ll bet Trump made a killing short selling all of his GM stock after he announced his plans for 25% tariffs, that made GM stock price tumble.
As always he’s in it for himself, that’s how the rich get richer.
Trump is morally bankrupt, narcissistic, pathological liar.
I’ll take that bet! How much 🤪
Biden, the one who was a leech on the taxpayers back for over 50 years. Glad he is gone. Surprised America survived all the damage he created.
Morally bankrupt, narcissistic, and pathological liar is all part of the job description when it comes to politicians.
Morally bankrupt, narcissistic, pathological liar is all part of a politician’s job description.
Yes, I believe you’re right. There is more truth to that than not.
85ZingoGRT,
Didn’t you benefit from Trump’s huge tax overhaul? – Cry me a river.
You are right we shouldn’t have shut everything down during the covid-19 global pandemic, until we found out how to do deal with the pathogen.
You should have drank bleach like Trump suggested.
If you take your daughter on a vacation to Italy, beware the public restrooms are coed in Italy, as in most of Europe.
I would worry more about my daughter being around Trump more
than a stranger. Trump purchased the Miss America Pageant and then went on to molest contestants. Trump was caught on a live mic standing in front of a bus speaking with one of his buddies about, you can do whatever you want to them you can grab them by the crotch if you want.
Trump is a rapist, molester, and abuser of women.
Yet he won the election in a landslide. Does not say much about Biden/Harris now does it?
Trump said he won by a landslide. Truth is he did not. He won, but in no way by a landslide. Trump lies or embellishes everything.
What it does say is that MAGA supporters are comfortable voting for a despicable reprehensible person to run our great nation.
He won by a landslide. PERIOD. He won the electoral and unlike the 2016 election the popular vote as well which means he won the vote of the independent voter. He knew what peoples concerns and frustrations are and he tapped into it.
Kamala had NOTHING to bring to the table. She was anointed into the ballot when Biden stepped down without a primary election. When asked what she would do differently from Biden she literally said “nothing”. And not to mention, the dems attacks on how white men this and white men that and Trump this and Trump that. They didn’t even try to tap into the concerns of the working class. NJ, a traditional deep sapphire blue state for the first time in 32 years nearly went purple this election.
Trump didn’t win because “MAGA supporters are comfortable voting for a despicable reprehensible person to run our great nation”. Dems lost because they refused to listen to the important independent voter needed to win and banked on Trump being a polarizing candidate, all while issuing threats about the other side (while anointing a candidate against the choice of the people) and boy did that blow up in their face. They have nobody else but themselves to blame for their loss.
Trump’s popular vote margin was the smallest since 2000 and 4th smallest since WW2. Definitely not a landslide.
Shows gm and others were not really prepared for the inevitability of a second Trump term, regardless of what Barra spouted.
GM, Toyota and FCA were all hedging their bets. Course FCA became Stella, and Stella is a boob floating in a sewer unfortunately. GM has a 6th gen small block and Toyota a new I4 coming out next year. Ford isn’t doing great on anything, but has enough Super duty sales to stay afloat no matter what happens. VW might be toast. They went all in, canceled all their ICE development, fired many of their department heads, and dumped their future on EV platforms. Just this year they had to do a 180, hired back a whole new ppwertrain department, are shuddering factories in Germany, their largest battery supplier in the EU just filed chapter 7 bankruptcy. VW will likely give big way to American brands. Some here would say the Chinese will come in, but their cars are currently struggling for sales in markets where even imported American cars manage to sell, of course with the exception of China who tarrifs the snot out of our vehicles.
It is interesting that GM Authority would leave out an important piece concerning these tariffs on Mexico, Canada and China – they are conditional.
The reason the tariffs are placed on Canada and Mexico is because they will not stop the flow of illegal migrants into the US.
The reason for the tariffs placed on China is because they won’t stop the flow of fentanyl into the US.
So these countries have a choice, if they choose to accept it.
News media these days has become entertainment rather than information. If it bleeds it leads and context and details is not required. Just take the info at face value and if it gets plenty of clicks roll with it.
There is no more “news”. No one states facts in their articles, no quotes from anyone identifiable, poor writing at best, and zero journalistic ethics. Just amazing how some people can still watch the rumor shows, formally known as evening news shows, and still believe what they hear. Printed articles are the same. Look at the authors background before believing.
Illegal drugs are a commodity, driven by demand. There will always be a supply where there is a demand.
In the United States, free Society, they have never had success in stopping the demand for drugs. They just blame the supply.
$2100 more for a car I choose to buy (or not to) is a heck of a lot cheaper than forced unrealized capital gains tax, a continued non-stop flood of foreign invaders or an unlimited flow of cash going to that Zalenskyy grifter giving 10% to the big guy.
Heck, isn’t 2100, just the yearly increase due to run away inflation? How much did the average new car go up just last year? FYI, 2023-2024 according to Google machine, average car price went up 1700$. Which was considered good as it was lower than prior years 😬😥
Statisitca,
2024-48,700
2023-47,000
2022-46,300
2021-42,400
2020-38,900
Id love cars to be 10K cheaper.
Are we going to need Brandon back in office?
God help us if we do.
Yep, and I could get run over by a school bus tomorrow but it doesn’t mean I will.
So far, two good comments from Ivan and Kelvin, offering an interesting perspective about how the drugs end up in the US. Why the downvotes? The rest, the usual garbage from Steve and Tigger.
Funny, unlike your posts, I have more positive votes than negative as does Steve. If our posts are garbage, what does that make yours?
Elect a clown, expect a circus. The circus begins on Jan. 20, 2025 One poster above made the statement, God help us, exactly, the country will need help to survive the next 4 years with Don the Con at the controls.
If America survived Biden, It will surly survive Trump.
The con artist, liar and thief is at it again but with a sidekick. And BOYCOTT TESLA too!
GM and others always have the option to move manufacturing back to the US and avoid any increased pricing. Trump also said if you make it here corporate tax will drop to 15%. Seems a no brainer to me. Oh I forgot these companies dislike the unions so much that they are willing to make bad business decisions.
100% correct, and often they move cause their afraid what will happen 4 years down the road. They prefer being in a country that relies on their money and will bend over backwards for them vs a country that every 4 years becomes hostile to buisness. Hence GM has also left Argentina even though labor is dirt cheap there.
Gm jacked up prices and is making record profits eventhou sales are dropping. The company can absorb $2k bite on each vehicle without batting a eye. We need US jobs which isnt what the auto execs want. But they forget that without a middle class in america, nobody will buy their foreign made cars. Just like 2008 recession.
Yeah, and will the author please tell us how much ICE vehicle buyers have had to fork over to cover development and manufacturing costs associated with EV mandates . And Mr. Author, while you’re at it tell us the dollar amount car buyers must shoulder because of the UAW’s recent contract .
God bless the UAW.
Start making the parts in the USA and put American workers back to work and all will not only be better built but also cost less.
As a Canadian watching the the changing of the guard I don’t think the Democratic left should solely focus on their fear of Trump. What they should be more concerned about is the legacy team that he’s putting in place to run the U.S. long after his term is over. I bet you won’t see a Democrat in the White House for 12-16 years. Tariffs or not, America will be better off in the near future and that will put the final nail in the Left coffin. Stumblin’ Joe and Word Salad Kamala literally decimated the Democratic Party. Now, with that being said, please pray for Canada that the same outcome befits Justin Trudeau when our election is held here.
85ZingoGRT,
Go back and look at the margin data for the last 10 presidential elections, then tell me again that Trump won by a landslide.
Interesting that media failed to mention increased vehicle prices under Biden and ridiculous UAW contracts …