Throughout his 2024 presidential campaign, Donald Trump repeatedly threatened to implement hefty tariffs on goods imported from Canada and Mexico. Naturally, if Trump eventually follows through on those threats, it could have a major effect on GM’s business, as The General produces a range of models in both North American countries, including major profit generators like the Chevy Silverado and GMC Sierra. Not only that, but the tariffs could even impact models produced inside the U.S., given GM’s reliance on imported vehicle parts.
For those readers who may have missed it, Trump has repeatedly threatened a 25-percent tariff on goods imported from Canada and Mexico, with the latest reports indicating a potential implementation of these tariffs in February. While the full financial impact of these potential tariffs on GM is uncertain, they would likely result in a substantial increase in manufacturing costs for vehicles assembled throughout North America.
As an example, let’s look at the Chevy Silverado, which is produced at the GM Fort Wayne plant in Indiana, the GM Silao plant in Mexico, and GM Oshawa plant in Canada. As it turns out, the GM Silao plant churns out 40 percent more units than the GM Fort Wayne plant in Indiana, while GM’s Oshawa plant produces 60 percent more units than Fort Wayne. To note, the Oshawa plant produces both the Silverado 1500 and Silverado HD models.
Even so, units of the Silverado produced stateside may still be affected by the proposed tariffs, with approximately 37 percent of components used in Silverado and Sierra production originating from Mexico. Meanwhile, the U.S. and Canada contribute an additional 37 percent, combined. It’s also worth mentioning that GM does not disclose parts content percentages for the Silverado HD and Sierra HD.
Model | U.S. / Canada | Mexico | South Korea | China | Final Assembly | Engine | Transmission / Drive Unit |
---|---|---|---|---|---|---|---|
2025 Chevy Silverado 1500 L3B (Fort Wayne) | 37 | 36 | - | - | USA | Mexico | USA |
2025 Chevy Silverado 1500 L3B (Silao) | 37 | 37 | - | - | Mexico | Mexico | USA |
2025 Chevy Silverado 1500 L84 (Fort Wayne) | 37 | 36 | - | - | USA | USA | USA |
2025 Chevy Silverado 1500 L84 (Oshawa) | 37 | 37 | - | - | Canada | USA/Canada | USA |
2025 Chevy Silverado 1500 L84 (Silao) | 37 | 37 | - | - | Mexico | USA | USA |
2025 Chevy Silverado 1500 L87 (Fort Wayne) | 37 | 36 | - | - | USA | USA | USA |
2025 Chevy Silverado 1500 L87 (Silao) | 37 | 37 | - | - | Mexico | USA | USA |
2025 Chevy Silverado 1500 LZ0 (Fort Wayne) | 37 | 36 | - | - | USA | USA | USA |
2025 Chevy Silverado 1500 LZ0 (Silao) | 37 | 37 | - | - | Mexico | USA | USA |
2025 Chevy Silverado HD L5P (Flint) | - | - | - | - | USA | USA | USA |
2025 Chevy Silverado HD L5P (Oshawa) | - | - | - | - | Canada | USA | USA |
2025 Chevy Silverado HD L8T (Flint) | - | - | - | - | USA | USA | USA |
2025 Chevy Silverado HD L8T (Oshawa) | - | - | - | - | Canada | USA | USA |
Model | U.S. / Canada | Mexico | South Korea | China | Final Assembly | Engine | Transmission / Drive Unit |
---|---|---|---|---|---|---|---|
2025 GMC Sierra 1500 L3B (Fort Wayne) | 37 | 37 | - | - | USA | Mexico | USA |
2025 GMC Sierra 1500 L3B (Silao) | 37 | 37 | - | - | Mexico | Mexico | USA |
2025 GMC Sierra 1500 L84 (Fort Wayne) | 37 | 37 | - | - | USA | USA | USA |
2025 GMC Sierra 1500 L84 (Silao) | 37 | 37 | - | - | Mexico | USA | USA |
2025 GMC Sierra 1500 L87 (Fort Wayne) | 37 | 37 | - | - | USA | USA | USA |
2025 GMC Sierra 1500 L87 (Silao) | 37 | 37 | - | - | Mexico | USA | USA |
2025 GMC Sierra 1500 LZ0 (Fort Wayne) | 37 | 37 | - | - | USA | USA | USA |
2025 GMC Sierra 1500 LZ0 (Silao) | 37 | 37 | - | - | Mexico | USA | USA |
2025 GMC Sierra HD L5P | - | - | - | - | USA | USA | USA |
2025 GMC Sierra HD L8T | - | - | - | - | USA | USA | USA |
If Trump’s new tariffs were implemented, the increased costs would most likely transfer to consumers, though determining the precise price hike is a complex issue. Historically, manufacturers absorb some of the financial burden to remain competitive, while passing the bulk of the increased costs on to customers.
With the Chevy Silverado and GMC Sierra serving as cornerstones to GM’s business, any potential production cost increases are likely a critical concern for the automaker. That said, whether or not the tariffs and related cost increases will actually manifest remains to be seen.
Comments
The trucks are already way too expensive.
I ordered my ’25 LTZ back in early December and it still doesn’t have a build date yet. Knowing the luck I have, the tariffs will be put into place and then my truck will magically start to be built with a price increase lol.
Canada does what our president says.
*Not if they’re built in Detroit.
Well Joey I’m afraid that may not be true. Many auto parts are made across the borders or even points beyond. The tariffs therefore could have an effect on trucks assembled in Detroit, Fort Wayne, Arlington etc. While I cannot predict the future and I don’t want to fear monger, I think it’s important to highlight that possibility. Especially important if you plan on buying a truck or own GM shares.
I think they should only place a tariff on the finished vehicle and any other part moved to Mexico/China after a certain date. On the other hand, give a tax cut and other incentives like income tax capture on any new job created for jobs that are repatriated.
That’s an interesting idea. We’ll have to see what the administration actually does.
Those tax breaks are already spoken for.
They are all going to Trump’s Buddies, the 1% of the richest in the US.
Elon Musk was worth around $25 Billion in 2020. He’s now worth around $400 Billion. Who’s been president the last 4 years?
Just like kick backs from the Ukrain war and dealings in China go to the Bidum crime family
Ivan, you have no evidence of that other than you aren’t to unstupid.
Everything Trump touches dies.
Read the above article, no GM pickups are built in Detroit!!!
Continuing the trend begun with the pandemic, automakers will find ANY excuse to raise prices and gouge more and this will be the next one, even if the tariffs are just a threat.
Then don’t buy one. Kinda like complaining about the cost of a cup of Starbucks while standing in line to buy a cup
When do they realize people just hold onto their cars longer and those dollars go to mechanics? GM’s “record profits” actually pail in comparison to their post bailout recovery once adjusted for inflation, and is a joke next to the early 2K/90’s/60’s. There comes a point where just building an affordable vehicle for the masses pays off handsomely. Ask Walmart and Amazon how they became giants, fiat how they bought Ferrari, Ford how pre WW2 dominated 60% of the global market.
They make like 10K per unit. Their jacking up the price, not the tarrifs. They easily can absorb it and not raise prices. Maybe this just means they stop making units that loose 7k per unit, like the bolt!
No sympathy here.
10k was 10 years ago
Guess higher
So the shareholders of the should pay the tarrifs? Got it. Also they stopped building the bolt in 2023
Sorry Charlie, they just stopped building the Cadillac XT4 in Kansas and will building the bolt there
Good grief, where did you learn English? “their” jacking up the price? Try “they’re”. They “loose” 7K per unit? Try “lose” 7K per unit
He learned English from watching Melania Trump talk (with subtitles) AND graduated top of his class at Trump University with a degree in English, p ussy grabbing and bankruptcy!
He at least realizes that there are only two genders and he’s grabbing the correct parts.
Normal people don’t vote for rapists or support sexual assault.
Exactly Dan! That’s why invited for 2 genders! I personally think SA and Rape should be life without parole, maybe even death penalty. They do that in multiple “enlightened” eastern counties and have surprisingly no issues with SA.
Voted, not invited 🤦♂️
That is what you think qualifies a person to be the president of the United States.
Trump is a morally bankrupt, narcissistic, pathological liar.
Amen, Brother Little Buzzard
He was a child left behind. Which, coincidentally, was also a Republican initiative, just like these tariffs!
so did you and Donald share a tent under the bridge? You seem to know him very well.
Little Buzzard
OH THANK YOU for calling out some half witted attempted English language post.
Too bad, he’s not the only abuser.
John, half-witted abuser. I don’t know. Maybe they are trying to do their best.
Over 20% of adults in America are functionally illiterate. That is one out of every five adults.
By the way half-witted has a hyphen.
Unfortunately artificial dumbtelligence. That’s my autocorrect that keeps adjusting to “their” when “they’re” gets fumbled. You think our big tech overlords would be able to do such a simple tasks. Not the only word either that gets garbled. I had a supervisor who was Sikh. Nobody could pronounce his name, so he went by Sunny. Can’t tell you the # of time autocorrect would change that to S$$$$y. Why? Sunny is a perfectly normal, and frequent word in the English language! I dont even cuss that much.
sure Steve, just like a lib…blame the computer.
GM shouldn’t have to lose due to Trump’s stupidity.
Just maybe, all those foreign manufactured parts should be made here, in the USA.
GM should make America first.
UAW
Then there would be even more whining about higher prices.
There is no reason why a GM truck should be made in Mexico.
Why not? Many are sold in Mexico
Here’s a reason… American jobs !
You can make the same argument about clothing, appliances, electronics, tools, tires, cell phones, the device you’re typing on. Get my point?
yep
Make the parts and trucks here!! We are the United States of America. It can be done, other leaders have just chosen not to!!
Here’s an idea, STOP BUYING……no one is forcing anybody to buy a truck. Rebates have to come back if you stop buying. Supply and Demand. Put the pressure back on the automakers. They have gotten so greedy since covid because of ignorant spending by the consumer.
I’m not sure it can be done anymore. Like President Musk and Vivek said, Americans are now too dumb and lazy. Republicans have convinced many Americans that education and job training is “woke” and bad. So we have to build our stuff in other countries with a more motivated and industrious workforce. Bring back shop class to high schools and then maybe we can talk about building truck factories here again.
Dan you are correct.
It is easier for these unmotivated whiners settling for minimum wage jobs to complain that they cannot afford new vehicles.
How about stop whining and go out and get yourself a better job.
Are you effing serious???
Better idea. Put the pressure back on Trump.
agree
Broad based, flat rate tariffs are really stupid, especially against our friends and allies. Trump is going to destroy the US and global economy. Your average 8th grader has a better grasp of economics and global trade than Trump does.
@GTP
The guy knows what he is talking about. He made millions into billions. What have you done? I love how all you guys think and know what’s going on. Truly funny. Been in office for a week. Getting things done. Yet the past 4 years have been a disaster.
@TNTSIERRA
You do not look like a GM fan according to your postings. More like using this site to promote your political ideas.
The guy made millions into billions, but for himself, similar to most of the guys around him. What have YOU done? You are right, some guys over here are thinking. As far as getting things done, it is too early to evaluate the “benefits” of the things done so far
@ Belo
I WAS a huge GM fan, growing up my father was a mechanic and the easiest and cheapest vehicles to work on were GM vehicles. Especially the trucks. I do not agree with the road Mary Barra has taken, and GM isn’t as competitive as they once were. You could not pay me to take a new GM truck now, especially with the lifter failures the new V8s are having. Go to GM truck forums and just see how many trucks are having issues!!
As for my political belief, I put my “view” on response to other peoples opinion! As for the Trump making billions, he has done it for himself, he has opened business world wide and given people jobs while doing so! HE is also the only president in the United States to NEVER take money for his position, and the only President to lose money while in office. Sit and think about that for a minute. As for what I have done. Interesting question, well I change the lives of people each and everyday for the better, if you want to know. How about YOU Belo!
Ever heard of a Ford? Toyota? GM is still the most reliable truck out there. Also, still the easiest to work on. In general, all vehicles have become less reliable and more complex.
Do y’all actually believe this stuff? Trump’s net worth has tripled during this campaign alone. He using his position solely to make money for himself. Look at the billionaires that sat all around him during the inauguration. Y’all gave him the Country and he sold it to the rich for personal gain. Great job, guys!
For the last 25 years I have been working in an Engineering role for a major Tier 1 equipment supplier for the Big 3. I was part of the installation team for high volume production lines in quite a few Ford and GM plants. I had to navigate between Union and Management to get our equipment installed and validated on time and with minimum waste of time and money. So I have a pretty good understanding on what it is taking to launch a new product. The major issue was and it is, finding competent and dedicated people at all levels to run these lines. So, I don’t see how somebody can think about a complete re shuffling of a global business on short term without wasting money and increase cost to be ultimately passed down to the consumer. As for the politics, I would wait for about two years to try and make a comparison between the two administrations. So far, to me, it doesn’t look promising.
He’s 80 years old and wears diapers. The days of knowing what he is talking about are behind him.
@Dan
Biden left office January 20th.
Exactly. Trump is now the oldest President in our Nation’s history to ever start a term. Older than Biden when he started his term. Republicans were so mad about having an old and senile president, they elected an older and more senile one.
His brain left about October 2021.
Oh, Danny…You sound like a bitter little Kamala supporter. You’re just another cry-baby Donkey. Trump has forgotten more about making $ than you’ll ever know. Your hate is pathetic…
Right! Biden only created more than 12 million jobs, growing the economy at nearly 6 percent—the fastest rate since 1984—resulting in an unemployment rate at a 50-year low, passed the Bipartisan Infrastructure Law, and signed the CHIPS and Science Act, dedicating nearly $300 billion to manufacturing investments, including workforce development and expansion of access to STEM education to revitalize the hardest-hit sectors of our economy, such as rural areas. It was SUCH a disaster!
@Prizmetrix
LMFAO…you are so uninformed! Biden didn’t create 12 million new jobs. They were jobs that we lost during covid!!!! Go do alittle research. Also many people are now working 2 jobs just to survive in this so called wonderful economy created by “Bidenomics” inflation was the highest it had ever been under him in 2022 in 40 years. Inflation. Under Biden the past 4 years. 2021–4.7
2022–8.0
2023—4.0
2024….2.9
Under Trump: 2016….1.3
2017—-2.1
2018—2.4
2019—-1.8
2020—-1.2
All out of control and high: let’s talk about groceries, gas, insurance, housing, rent, vehicle prices, interest rates. Ect…
Man I knew libs were crazy…..but foolish as well.
Smoke much??
You do realize that just today, the head of BMW called for lowering the tariffs on American vehicles to 2.5%, the same as America charges Germany? Currently, Germany puts a 10% tariff on American vehicles.
So the only 2 countries you think we should have no tarrifs on is Israel and Argentina? IDK if you’ve been paying attention, but our “allies” have been criminally screwing us for decades. Germany deserves tarrifs ally or not just from a decent human being standpoint. Canada and Mexico aren’t as bad as the Germans, but we probably should implement a 10% tarrifs on both for a whole decade or more just to recoup what they’ve done to us.
Being honest, I’m a fan of free trade. Free trade isn’t we have no tarrifs and everyone else in the world charges tarrifs on us. You would agree we want everything to be fair correct?
GM chose to manufacture vehicles and parts outside of the country in order to take advantage of cheap labor and increase the bottom line. Now your going to increase higher costs onto the consumer? Did you pass on lower costs when you moved manufacturing out of the country. Of course you didn’t. Give me a break!
Corporations are no different than consumers. Consumers shop for products/ services and corporations’ shop for labor. You wouldn’t pay $800 for a TV if you could purchase a similar TV for $400. Why would you expect a corporation to pay $30 for a widget if they can get a similar widget for $15? It’s called basic economics.
I’ll gladly pay more for Made in the USA and if it takes Trump’s tariffs to level the playing field and force foreign countries to Import more and export less to the US, I’m all for that, too. All foreign nations have been screwing us for decades and even they can’t believe how they’ve gotten away with it. With regards to GM’s spiraling prices (among other things), they’re already suffering from the effects of the new UAW contract But, that’s just the tip of the iceberg.
Back to the foreign countries, just think of this during tax season. We give them aid for everything: health care, food, etc. and protect them. It’s a laugh to think that China is still categorized as a “developing nation”.
The issue is closing and defending our borders……..If Canada and Mexico stop the flow of illegal immigrants through their countries this will be a non issue. GM needs to focus on building more vehicles and parts using US labor…..many small “GM” towns took huge hits as their business left……I see that the Belvidere plant will be un-mothballed and will be building a mid-sized truck, huge win for that community.
GM has had almost 6 months to start moving jobs back to USA . I don’t want an American truck made in Mexico . As for Canada they just should just ask for statehood. Eventually Americans wont be able to afford GM trucks because there aren’t enough high paying jobs . Also if GM can now make vehicles we want instead of what the gov wants and get rid of dei prices should come down . Not to mention our so call allies that have huge tariffs on USA vehicles. If those markets open through reciprocal tariffs and we reduce the Japanese, Korean and German imports ,GM will benefit greatly as will the consumer ! Thank God for President Trump !
You really need psychiatric help!
You need to put down the pipe…
TO ME THERE IS ONLY ONE GOD ; SO WHICH god are you talking about???
Those trucks are marked up 1000%, I retired from gm a few years ago
Retired? Was it due to your math skills?
They’ll probably make the 2.7L all in MEX/CAN, and relocate V8 Gas/3.0s build US side. To balance costs…
Want to talk about tricky politics, why can’t GM Brazil/Columbia and Mexico all work to develop emerging market vehicles? Brazil does their own thing, which causes their cars to be more expensive than ours, Colombia has given up and imports Chinese cars, also not cheaper than ours, but built cheaper, and Mexico makes cars for us, but then buys cars made from everywhere else, including America! WTF?
these prices were going up anyway. Tariffs have nothing to do with it. But the Dems use it as a talking point. Rather than talk about the mess BiDUM got us into.
STOP SHIPPING WORK OVERSEAS. OTHERWISE CUT THE PAY OF BRAINLESS BARRA AND MARK REUSS UNTIL WORK RETURNS TO AMERICA!!!
AMERICA FIRST…WHERE IS THE CORRUPT UNION COMPLAINING ABOUT THIS. I’M GUESSING FAIN BRAIN GOT A CHECK MADE OUT TO HIM SO IT’S A NON ISSUE.
David, I think your caps key is stuck.
Not necessarily on topic, but I find it interesting that Oshawa only builds 5.3L (L84) trucks. I never knew that.
Red,
You may not have known that the 5.3 L engine is made at Tonawanda engine plant. Tonawanda is a suburb of Buffalo New York. The engines are shipped right across the border to Oshawa. The Transmissions are also made in the US, but I’m not sure at which plant.
Google Tonawanda engine plant. You will find some very interesting information. They were at one time the world’s largest engine plant, and may still be. During World War II one of the plants on the site built 18 cylinder Pratt and Whitney radial engines, for use in light bombers and fighter planes.
The unfortunate part of all this issue is we have raised 2 generations of “kids” that have been spoiled and are “too good” to work in factories. I get it. We all want our prodigy to do better but if we want manufacturing to be dominant, we have to stop demanding that everyone get an MBA. Bring back vocational education in high schools. Respect, support and encourage anyone who wants to become a tradesperson. Trades build “everything”. With respect comes pride in workmanship. There’s LOTS of room for good well paid “blue collar” jobs. It’s actually the key to making anywhere “Great Again”. I remember a great slogan: “Buy what your neighbour builds.” Make that our moto regarding just about everything we “consume”. As we have now found out, cheaper is not always (and rarely) better.
Fred, I completely agree with you.
Unfortunately the prevailing attitude among most young people is, hooray for me and screw the next guy. And why not, that’s what they see from their president. Trump has been that way his whole entire life, and he’s proud of it.
Maybe Mary Barra could stand to cut back on her annual salary of 27 million dollars, GM is far from broke if they can pay their CEO 27 million a year and who the hell need that kinda money per year? Ridiculous
If she were a pro athlete she’d be underpaid. How many pro athletes have the skills to run a company the size and complexity of a company like GM?
One day manufacturing of both parts and vehicles will return to America when slavery becomes illegal again. Because people have gotten use to using immigrants and illiterates to work for nothing and cut Americans out of jobs we have been called the largest slave country in the world by National geographic.
I am sure MAGA Idiots will gladly pay more for US made vehicles! Or maybe the auto makers will
eat the extra cost of producing in the US!
This article has to be one of the most commented on topics of all time. A very touchy issue to address.
The past economics policies are not working anymore. So, I am for changing things in anyway. Studied econ in college and the professors preached against tariffs.
The United States is being abused by other countries. So, if tariffs will get the leaders attentions, go for it.
It would be interesting to know whether – in terms of vehicles – GM exports more vehicles to Canada and Mexico than it imports from these two countries. That is, in terms of GM production across the continent, is the parent (US) company in a trade deficit or surplus position. I don’t recall seeing numbers that speak to this, and it might be enlightening in terms of the tariff discussion as it applies to GM.
I love how there is zero mention of how these trucks went from around 45k for a normal Texas Edition/All Star LT with the 5.3 to close to 60k for the same basic thing the past 3 years and here we are pissing and moaning because a tariff might be put on certain vehicles. I’ll bet the price doesn’t go up nearly as much even with the tariffs in place. Oh and prices would be going up on these massive profit makers regard of who the president is and if we have tariffs or not because gM is using this money to further fund mary’s EV project