During his campaign, U.S. President Donald Trump proposed the idea of implementing tariffs on goods imported from countries including Mexico and Canada, with levies up to 25 percent on those items – an idea that he hasn’t given up on as Trump works to potentially renegotiate the current United States-Mexico-Canada Agreement (USMCA). Such a move would have major implications not only for consumers, but also, automakers such as Ford and General Motors, which currently build a variety of vehicles in Mexico and sell them in the U.S. Though Ford remains seemingly unbothered by this possibility, the same apparently isn’t true over at GM.
“It is a disruption that is in no one’s interest, especially in the U.S.,” GM Canada President Kristian Aquilina said in a recent interview, according to GM Authority. “It’s an industry that’s been built over a long period of time to assume natural flow of goods. The cost of those vehicles for us to purchase, and then sell to our dealers and customers, is getting higher,” Aquilina added, pointing to a weakening Canadian dollar that has seen its value drop by 4.5 percent compared to the U.S. dollar since election day.
As Ford Authority previously reported, these proposed tariffs could impact cheaper vehicles the most, given the fact that around a third of all American vehicles sold in the U.S. with price tags under $30k are produced in Mexico at the moment utilizing more affordable labor, including the Ford Maverick and Ford Bronco Sport, which are two of the automaker’s cheapest vehicles on sale today (the Ford Mustang Mach-E, also built in Mexico, starts out at $39,995, too).
Trump has also proposed similar tariffs for goods imported from Canada, where FoMoCo builds a variety of components including engines, though no vehicles at the moment – at least, until Ford Super Duty production begins at the Oakville Assembly plant in 2026. Regardless, around 1.5 million vehicles are produced in Canada and imported into the U.S. annually from a variety of other brands.
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Sounds like they weren’t prepared and didn’t think ahead. Again, since they have near zero hybrids and went all in on EVs
This. Plus, gm is all in on the WEF/Blackrock/etc nonsense.
Although my fun car is a 2024 Mustang GT, I normally have GM daily drivers. At this point I have a 2022 Chevy Equinox. I’m looking at a new Equinox or Terrain but it appears that there may be issues with prices and repair parts.
GM has really disappointed me.
As is typical, Ford has way fewer brains than GM. GM is right and it’ll be total chaos. Heck, even Mother Nature is expressing disapproval.
So sick of your comments, honestly. With love – Joe Biden
MAKE AMERICA SMART AGAIN!!! Guess we’ll have to put that on hold for another four years.
But you had no problem with paying 10-30% more for everything during the Bidenomic four year fiasco right?
It’s probably closer to 30%-100% for many things. Even worse for a lot of people’s insurance.
Because “smart” is everything that just happened the last 4 years? Try thinking as an independent and not for the team your daddy and granddaddy told you to. It will set you free and you’ll see the fault on both sides, not just one or the other. If we had different results last November the consequences for our Republic would have been irreversible.
“Seemingly” unbothered. Farley does a lot of talking, but there’s often little substance to what he says. This has been proven over and over. A look at how both companies are run and their results tells the story. Yes: there’s little doubt that the potential is there for significant disruption to the industry, and to suggest otherwise indicates an insufficient grasp of the situation, or simply bluffing.
Maybe, just maybe the suppliers should be all American. With ALL parts made in America! Like it was in years gone by. Then they would be a real American automobile company. Again! And there wouldn’t be any worry about tariff’s either.
An the price of cars sourced and built in America will be twice as expensive.
This is possible but the American customer won’t like it – unless you are onboard to pay $100k for a compact SUV! American labour & energy are expensive in many ways and too disruptive as well.
Funny that after 4 years of record inflation in almost every measure able metric, people are worried about the cost of something because we have a new POTUS. He apparently is not on “their side”. I wish somehow they’d do away with political parties, 90% of Americans wouldn’t know what to think about anything ( and therefore not give opinions as experts on EVERYTHING) politicians did. The media would have nothing to report on because they wouldn’t know who was “bad”. The big $$$ donors would have to buy everybody and not just key members of each party. Win, win & win!!!