Since Donald Trump won the 2024 U.S. Presidential election earlier this month, there has been rampant speculation about what he will do when he heads into his second term in January – with much of that speculation revolving around the automotive industry. Based on comments Trump made during his campaign, it’s possible that he’ll kill off the EV tax credit and implement tariffs on goods imported from Mexico – anywhere from 100-200 percent, leading to a big impact on the industry. There, a number of vehicles are built for the U.S., though Ford reportedly has no plans to move production north of the border. Now, Trump has expanded his scope in that regard, and is suggesting that he might add tariffs to other countries exporting goods into the U.S., too.
According to the Associated Press, Trump is now proposing tariffs on goods imported from not only Mexico and China (which was just slapped with tariffs from the Biden Administration back in September), but also, Canada. Those tariffs will reportedly come in at 10 percent for goods brought in from China, and 25 percent for those stemming from Canada and Mexico, which Trump would reportedly implement via an executive order once he takes office.
“On January 20th, as one of my many first Executive Orders, I will sign all necessary documents to charge Mexico and Canada a 25 percent Tariff on ALL products coming into the United States, and its ridiculous Open Borders,” Trump wrote in a post on Truth Media. “Thousands of people are pouring through Mexico and Canada, bringing Crime and Drugs at levels never seen before,” he added, saying that the tariffs would remain in place “until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country!”
However, as AP points out, it’s unclear if Trump actually plans on implementing these tariffs, or if the threats are simply a negotiating tactic. His nominee for treasury secretary, Scott Bessent, recently stated that tariffs are “a useful tool for achieving the president’s foreign policy objectives. Whether it is getting allies to spend more on their own defense, opening foreign markets to U.S. exports, securing cooperation on ending illegal immigration and interdicting fentanyl trafficking, or deterring military aggression, tariffs can play a central role.”
