Trump’s tariffs may cause the US automotive industry to lose $ 33 billion

Analysts predict that President Donald Trump’s tariffs on Canada, Mexico and China may cause the US automotive industry to lose $ 33 billion. It is expected that low -income consumers will feel the first of these tariffs, and the trade war may increase prices and increase living costs.

Starting on February 4, imports from Canada and Mexico will be attacked by 25 % of tariffs, and goods imported from China will hit 10 % tariffs. These tariffs will have a great impact on the automotive industry. Between January and November 2024, about 27 % of cars and car parts imported from Mexico, and 12 % of Canadian imports were cars and parts.

Reading: China, Canada and Mexico have been hit by Trump tariffs, which has triggered a new trade war

ANINDYA DAS from Nomura Securities said the tariffs between the three countries will reduce the operating profit of the United States by $ 33 billion. Of all new vehicles sold in the United States last year, no less than 22 % were produced in Mexico or Canada.

According to Nikkei Asia, about 27 % of the NISSAN models sold in the United States are from Mexico, and about 13 % of Honda sells nationwide and imported on the southern border nationwide. However, not only foreign -made cars will be affected by tariffs.

The United States imported about 60 % of oil from Canada. In addition, the northern part of Dabai accounted for 40 % of minerals and metals imported to the United States by value in 2023.

Sayu Ueno, president of Mitsui & CO USA, said: “Tariffs, just like consumption tax, are regression, so their influence on low -income consumers is more heavier.”

Some foreign car manufacturers are considering transferring more output to the United States to avoid tariffs. According to a recent report in Germany, both Porsche and Audi may change some American production. Both auto manufacturers are considering that the Volkswagen Factory in Chathaka, Tennessee may establish its own models. The factory is currently building ATLAS and ID.4. Audi is also likely to build a car in the South Carolina Factory, which is currently built for the Gourd Army brand.