President-elect Donald Trump's Trade Tariff Plans

(Reuters) – President-elect Donald Trump in late November pledged tariffs on the United States' three largest trading partners – Canada, Mexico, and China – detailing how he will implement campaign promises that could trigger trade wars.

Affected Companies by Sector

AUTOMAKERS

• AUDI: Volkswagen's Audi plant in San Jose Chiapa, Mexico, makes the Q5, employing just over 5,000 people. It produced nearly 176,000 cars in 2023, exporting nearly 40,000 to the U.S. in the first half of 2024.

• BMW: Produces the 3 Series, 2 Series Coupe and M2 in San Luis Potosi, Mexico, primarily for the U.S. market. The all-electric 'Neue Klasse' model line is planned to start production in 2027.

• BYD: The Chinese EV maker is scouting locations for a plant in Mexico, focusing primarily on the domestic market.

• HONDA MOTOR: Exports 80% of its Mexican output to the U.S. The COO warned about potential shifts in production if permanent tariffs are imposed on vehicles from Mexico.

• JAC MOTORS: Partners with Giant Motors in Mexico to assemble JAC brand vehicles.

• KIA CORP: Operates a factory in Mexico making Kia vehicles and some Hyundai Santa Fe SUVs for U.S. export.

• MAZDA: Exported around 120,000 vehicles from Mexico to the U.S. in 2023; the tariff concern is said to require careful consideration.

• NISSAN MOTOR: Produces models such as Sentra, Versa, and Kicks at two plants in Mexico, with nearly 505,000 vehicles made in the first nine months of 2024.

• STELLANTIS: Operates two plants in Mexico, producing Ram pick-ups, vans, and Jeep Compass.

• TOYOTA MOTOR: Canadian production of Tacoma pick-up trucks has shifted entirely to Mexico, selling over 230,000 units in the U.S. in 2023.

• VOLKSWAGEN: Largest auto plant in Mexico located in Puebla, which produced nearly 350,000 cars in 2023 for the U.S.

AUTO SUPPLIERS

• AUTOLIV: Employs around 15,000 staff in Mexico but did not comment on U.S. exports.

• MICHELIN: Operates two plants in Mexico.

• YANFENG: Manufactures automotive interiors in Mexico for companies such as General Motors and Toyota.

OTHERS

Includes Italian tyre maker Pirelli and Tesla's encouragement for Chinese suppliers to establish in Mexico.

ELECTRONICS

• FOXCONN: Building an AI server factory in collaboration with Nvidia in Mexico by early 2025.

• LENOVO: Produces data center products in Monterrey, Mexico.

• LG ELECTRONICS & SAMSUNG ELECTRONICS: Both companies manufacture various electronics in Mexico and export to the U.S.

FOOD & DRINK

• CAMPARI: Produces tequila in Mexico, importing a significant portion of U.S. sales from there.

RETAIL

• FIVE BELOW: Imports 60% of products from China and is preparing for potential tariff impacts.

• H&M: Monitoring tariff risks linked to production in China.

PACKAGED GOODS COMPANIES

• P&G: 10% of shipments from Mexico; tariffs could impact its supply chain.

• UNILEVER: Around 2% of imports into the U.S. come from Mexico.

Conclusion

Both automakers and suppliers are assessing risks associated with potential tariffs as they could significantly impact their operations and export activities.