Trump’s Canada and Mexico Tariffs Could Hurt Carmakers

Published On Feb 1, 2025, 8:00 PM

The article discusses the recent tariffs imposed by President Trump on goods imported from Canada, Mexico, and China, which will impact automakers significantly. General Motors, which produces a substantial portion of its vehicles in Mexico and Canada, is expected to be the most affected, as nearly 40% of its North American production comes from these countries. The new tariffs are anticipated to increase the prices of new vehicles for American consumers, further straining the automotive market where prices are already high.

Stock Forecasts

GM

Negative

The imposition of tariffs will likely pressure profit margins for automakers, especially General Motors, due to increased production costs and higher retail prices. This could lead to a decrease in consumer demand if prices reach unsustainable levels, negatively impacting GM's financial outlook.

Related News

Ties between the United States and Mexico have deepened over 30 years of free trade, creating both benefits and irritants.

GM
WMT
CAT

New mixed messages this week about President Donald Trump's implementation of tariffs are flummoxing markets and businesses hoping for clarity on the 2.0 version of Trump's trade policy.

Investors also assessed a return to a tougher tone on tariffs from President Donald Trump, ahead of the start of a Federal Reserve meeting

NVDA
GM
JBLU