- Auto-industry tariffs expected in April could lead to immediate price increases
- Mexico produces many EVs for the U.S. market but has low domestic demand
- EV tax credit may still apply to vehicles manufactured in Mexico and Canada
The looming threat of auto tariffs impacting vehicles made in Mexico and Canada remains a concern. Industry analysts predict challenging times ahead for the affordability of vehicles.
President Donald Trump recently announced that auto-industry tariffs, along with additional tariffs on China and the EU, are on the horizon, set to be implemented in the coming days.
According to Politico, the U.S. imported $471 billion worth of automotive products in 2024, including $214 billion in passenger cars.
Mexico is a key producer of U.S.-bound EVs, but the country itself has low EV adoption rates due to a lack of charging infrastructure and affordability issues.
Despite the challenges, Mexico has plans to develop its own EV supply chain and introduce federally subsidized EVs priced as low as $4,400.
2025 Chevrolet Blazer EV
Under the Inflation Reduction Act signed during the Biden administration, tax credits of up to $7,500 are available for vehicles meeting certain North American assembly and sourcing requirements.
However, there are concerns that imposing tariffs on Mexico and Canada could result in immediate price hikes for some models and potentially lead to the withdrawal of certain vehicles from the market.
A Reuters report highlights that a 25% tariff on parts from Mexico and Canada could significantly raise vehicle costs, impacting U.S.-assembled vehicles as well as those manufactured in Mexico or Canada.
Major automakers like GM rely on imports from Mexico and Canada for various vehicle models, including profitable trucks and EVs. Tariffs could disrupt these supply chains and increase costs for consumers.
2025 Ford Mustang Mach-E Rally
As per the American Automobile Labeling Act (AALA) requirements, here are some EVs, hybrids, and plug-in models currently manufactured in Mexico and Canada:
EVs from Mexico
Ford Mustang Mach-E (EV)
Cadillac Optiq (EV)
Chevrolet Blazer EV
Chevrolet Equinox EV
Honda Prologue (EV)
Jeep Wagoneer S (EV)
2025 Ford Maverick XLT
Hybrids from Mexico
Audi Q5 S line 55 e (plug-in hybrid)
Ford Maverick hybrid
Toyota Tacoma hybrid
2024 Dodge Charger Daytona
EVs from Canada
Dodge Charger Daytona EV
2025 Honda Civic Hybrid
Hybrids from Canada
Chrysler Pacifica Hybrid (plug-in hybrid)
Civic Hybrid 5-dr
Lexus RX350h
Lexus RX500h
Toyota RAV4 Prime (plug-in hybrid)