The US auto industry is set to face new tariffs of 25% on imports from Mexico and Canada, effective immediately. This move could increase the average US car price by around $3,000. Nearly a quarter of newly sold passenger vehicles in the US are assembled in Mexico or Canada, with some major carmakers relying heavily on these countries.
US-built vehicles also contain a significant amount of foreign parts and content, such as 20% of components from Mexico, as seen in Tesla’s US-sold cars. The tariffs would affect the industry’s highly integrated North American supply chain, posing significant costs.
The levies were announced by President Trump, who stated they would take effect on Tuesday. This is one of several tariff scenarios facing the industry, and applies to vehicles and car parts.
Source: https://www.wsj.com/business/autos/on-another-tariff-eve-here-is-the-impact-to-u-s-autos-c6592b0a