Carmakers in the firing line of Trump's tariff threats against Mexico, Canada

US President Donald Trump has pledged to place 25% tariffs on imports from Mexico and Canada from February 1 if the two countries are not judged to be doing enough to stop the flow of fentanyl into the US.

About 90% of car exports from Mexico and Canada go to the US, according to the Mexican Automotive Manufacturers' Association (AMIA) and the Canadian Vehicle Manufacturers' Association.

German carmakers, of which Volkswagen would be most affected, have warned against the tariffs, saying they would cause inflation for consumers. These are the carmakers that would be affected, in alphabetical order:

Audi

Volkswagen's Audi plant in San Jose Chiapa, Mexico, makes the Audi Q5, employing just more than 5,000 people. It produced nearly 176,000 cars in 2023, its website showed. In the first half of 2024, nearly 40,000 were exported to the US, according to AMIA.

BMW

BMW's plant in San Luis Potosi, Mexico, produces the 3 Series, 2 Series Coupe and M2, with nearly all output going to the US and other markets worldwide, according to the carmaker. From 2027, it will produce the all-electric Neue Klasse model line.

Ford

Ford has three plants in Mexico: its Chihuahua engine plant and two assembly plants in Cautitlan and Hermosillo.

It exported just under 196,000 cars from Mexico to North America in the first half of 2024, with 90% of vehicles going to the US, according to AMIA.

In Canada, it has an assembly plant in Oakville where it plans to produce a larger, petrol-powered F-Series pickup truck from 2026.

General Motors

GM imported about 750,000 vehicles from Canada or Mexico in 2024 to the US, with most manufactured in Mexico, according to business analytics firm GlobalData.

They include some of GM’s most popular vehicles, including the Chevy Silverado, GMC Sierra full-sized pickups and mid-sized SUVs.

GM's Mexican plants also build two of its critical new electric vehicles, battery-powered versions of its Equinox and Blazer SUVs.

In Canada, GM operates three plants, producing electric vans, the Chevrolet Silverado heavy duty truck and the V8 engine and dual clutch transmission for shipment worldwide.

Honda

Honda Motor sends 80% of its Mexican output to the US market. It warned on November 6 it would have to consider shifting production if the US imposed permanent tariffs on Mexican imports.

JAC Motors

JAC Motors assembles JAC brand vehicles via a joint venture with Mexican firm Giant Motors.

Kia

South Korea's Kia has a factory in Mexico that makes its own vehicles and some Santa Fe SUVs for its affiliate Hyundai Motor for export to the US.

Mazda

Mazda exported about 120,000 vehicles from Mexico to the US in 2023, but has said it may reconsider further investments if tariffs are imposed.

Nissan

Nissan has two plants in Mexico where it makes the Sentra, Versa and Kicks models for the US market. It produced nearly 505,000 vehicles in Mexico in the first nine months of 2024.

Stellantis

Stellantis operates two assembly plants in Mexico: Saltillo, which makes Ram pickups and vans, and Toluca, for the Jeep Compass mid-sized SUV.

The Franco-Italian-American group also owns two assembly plants in Ontario, Canada: Windsor, where it makes Chrysler models, and Brampton, now under retooling and scheduled to resume production in 2025 with a new Jeep model.

Toyota

Toyota builds its Tacoma pickup truck at two plants in Mexico. It sold more than 230,000 of them in the US in 2023, representing about 10% of its total sales in that market. Toyota used to produce the Tacoma in the US but now ships all of them from Mexico.

Volkswagen

Volkswagen's factory in Puebla is the largest car plant in Mexico and one of the largest in the Volkswagen Group, according to the carmaker's website. Nearly 350,000 cars were made there in 2023, including the Jetta, Tiguan and Taos, all for export to the US.

In Canada, Volkswagen is building a battery gigafactory in St Thomas, Ontario, investing up to C$7bn (R90.77bn) with a view to use the batteries for cars it sells in North America. Production is expected to begin by 2027.