The tariffs for cars and automatic parts announced on Wednesday will have far -reaching effects on car manufacturers in the United States and abroad.
Based on the circumstances of each company, however, there will be important differences.
Tesla
The company led by the confidant Mr. Trump, Elon Musk, produces cars that sells in the United States in factories in California and Texas. As a result, it is perhaps the least exposed to tariffs.
However, the company buys parts from other countries – according to the national road safety administration, about a quarter of the components come from abroad according to the value in their cars.
In addition, Tesla is struggling with declining sale around the world, partly because the political activities and statements of Mr. Musk have shut down a slight and liberal buyer of cars. Some countries could seek retaliation against Mr. Trump’s tariffs by focusing on Tesla. Several Canadian provinces already have stopped offering incentives For purchasing electric vehicles Tesla.
General Motors
The largest American car manufacturer imports many of its best -selling and profitable cars and trucks, especially from Mexico, where it has several large factories that spew models like Chevrolet Silverado. About 40 percent of GM sales in the United States last year were compiled by vehicles abroad. This could be a vulnerable society to tariffs.
Unlike some other car manufacturers, however, GM has published strong profits in recent years and considered analysts to be a good financial position. This could help him better than other companies, especially if the fees are removed or diluted by Mr. Trump.
Ford
Ford is much less dependent on imported cars than many of its opponents. It earns about 80 percent of vehicles that sell in the United States in the country. As a result, this would be relatively insulated from 25 % of tariffs to imported vehicles.
However, the company still depends on foreign factories for the main parts, such as engines. For example, the Ford factory in Ontario produces engines for some of its pickups. Ford loses billions of dollars on electric vehicles. One of its three battery models, Mustang Mach-E, is produced in a factory near Mexico City.
Stellantis, which was created by the fusion of 2021 Fiat Chrysler and Peugeot, is also struggling with slow sales and looking for a new CEO. These challenges are reported by some others, such as Nissan, at greater risk, especially if the tariffs remain in the place of the month or years.
Toyota
Like other Japanese car manufacturers, Toyota is very dependent on the United States and sold 2.3 million cars in the country last year. About 1 million of these vehicles were made in other countries, many of which in Canada, Mexico and Japan. This could be a big problem for society and automakers like Subaru and Mazda that Toyota works closely with.
But Toyota, the largest car manufacturer in the world, is in a better position than other car. Analysts are profitable and are considered one of the best companies in the global automotive industry.
Volkswagen
The largest European automaker could really be injured by tariffs because it has only one factory in the United States, Chattanooga, Tenn. He imports many of his cars, including Audis and Volkswagens from Mexico and Porsches from Germany.
In recent years, the company has fought financially because its sale in China has fallen sharply, where domestic car manufacturers grew rapidly by introducing many available electric and hybrid vehicles. Volkswagen hoped to go in the United States, but Mr. Trump’s latest tariffs could make this difficult task even harder.
Hyundai and be
South Korean Stablemates have achieved impressive profits from sales in the United States in recent years. Companies also invested in a new electric vehicle factory in Georgia, which is beginning to increase production, which can help them avoid tariffs on some models.
On Monday, the executive chairman of Hyundai Euisun Chung in the White House with Mr. Trump announced that his company was investing another $ 21 billion in the United States, including a new steel factory in Louisiana. Although Hyundai and Kia now have three factories in Georgia and Alabama, they will not be able to avoid tariffs to hundreds of thousands of cars that import them to the United States. Many of these vehicles came from South Korea, which in 2007 negotiated a business agreement with the United States, which was updated during the first term of Mr. Trump.
