- U.S.-assembled vehicles could see a $2,100 increase due to tariffs on imports from Canada and Mexico
- Mexico-made pickup trucks might face a price hike of $8,000-$10,000
- Tariffs could impact EVs like the $35k Chevy Equinox EV
The proposed 25% tariffs on all imports from Canada and Mexico by the incoming Trump administration could have significant repercussions on the Detroit Three automakers, raising prices not only for EVs but also for the gasoline pickup trucks that are vital to these automakers, according to Reuters.
GM is anticipated to bear the brunt of these policies, which are rooted in anti-immigration sentiments that characterized Trump’s campaign but would disrupt well-established North American supply chains, as reported by Reuters.
GM is projected to import over 750,000 vehicles from Canada and Mexico this year, with a substantial portion being the highly profitable full-size gasoline pickups that contribute significantly to the automaker’s profits.
2025 Chevrolet Equinox EV
Additionally, Reuters highlights that tariffs could impact the pricing of the Chevrolet Equinox EV, GM’s most affordable electric model. Assembled in Mexico, it currently costs $34,995 before a $7,500 federal EV tax credit that Trump is expected to eliminate.
Mexico serves as a significant EV manufacturing hub, with more EVs exported to the U.S. than sold domestically. This trend extends to all vehicle types and their components. As per Reuters, 90% of light vehicles and 43% of auto parts produced in Mexico are exported to other parts of North America.
The proposed tariffs would cover both complete vehicles and parts. A 25% tariff on parts from Canada or Mexico could result in a $2,100 cost increase for U.S.-assembled vehicles and $8,000-$10,000 for vehicles assembled in Canada or Mexico, according to Wells Fargo estimates cited by Reuters.
Ford Mustang Mach-E assembly – Mexico
Trump supporters may experience the financial impact more acutely. While many pickup trucks are manufactured in the U.S., several popular models, including GM’s Chevrolet Silverado and GMC Sierra, Ford Maverick, Ram 1500, and Toyota Tacoma, are produced in Mexico. Therefore, tariffs would affect the vehicles preferred in rural areas that heavily supported Trump, as noted by Reuters.
Trucks are typically profitable, offering automakers a chance to absorb cost increases rather than passing them on to consumers. However, more affordable compact cars like the Nissan Sentra, as industry analyst Sam Fiorani pointed out to Reuters, may not have the same luxury. EVs could witness similar price hikes as budget-friendly gasoline cars.