GM and other US automakers to be hit by Trump tariffs

U.S. President-elect Donald Trump's proposed 25% tariff on imports from Mexico and Canada could negatively impact U.S. automakers, particularly General Motors (GM), and raise prices for SUVs and pickup trucks in the U.S.

GM and other US automakers to be hit by Trump tariffs

GM leads in exporting cars from Mexico, with other Detroit manufacturers like Ford and Stellantis also feeling the effects. GM is expected to import over 750,000 vehicles from Mexico and Canada this year, including popular models like the Chevy Silverado and GMC Sierra. The tariffs could also affect GM's new electric vehicles, as Trump’s plan to end a $7,500 EV subsidy could hit these models.

Warning for US economy

The tariffs may harm the U.S. economy as much as its North American trade partners, according to Kenneth Smith Ramos, Mexico’s former chief negotiator for the USMCA. GM employs 125,000 people in North America, and any decline in sales of Mexico-made cars could impact profits and jobs on both sides of the border. The tariffs would also raise vehicle costs in the U.S., as Mexico and Canada supply more than half of all auto parts exported to the country.