You are using an older browser version. Please use a supported version for the best MSN experience.

Every New Car That May Jump in Price from U.S. Tariffs on Mexican Imports

Car and Driver logo Car and Driver 6/3/2019 Clifford Atiyeh
a large long train on a steel track: President Trump's proposed tariffs on all Mexican goods could cost car buyers.© GUILLERMO ARIAS - Getty Images President Trump's proposed tariffs on all Mexican goods could cost car buyers.
  • A 5 percent tariff could be instituted as soon as June 10 for all goods imported into the United States from Mexico.
  • Mexican plants from 13 automakers produced 4.2 million cars in 2018, the majority of which were imported to the U.S.
  • Mexico also exports 90 percent of its OEM car parts to the U.S.

By next Monday, President Trump has stated, the United States will impose a 5 percent tariff on all Mexican imports "until such time as illegal migrants coming through Mexico, and into our Country, STOP." In the absence of a governmental commitment to any solution that could reform immigration laws and processes, just as when the White House alleged that foreign-made cars are a national security threat, the auto industry is again finding itself entrenched in political disputes.

Trump's stated intention is that Mexico be financially punished for illegal migration, but it is Americans who may also be hurt by additional car tariffs that, until now, had only affected a handful of lower-volume models imported from China. Those cars, such as the Buick Envision, have not risen in price after Trump announced 25 percent tariffs on certain Chinese imports last June. But 13 automakers-U.S., German, Japanese, and Korean-operate 21 plants in Mexico, the majority of which export cars to the United States. They're unlikely to absorb a 5 percent tariff on high-volume models, all of which currently are duty free under the former NAFTA and pending USMCA rules. If the tariff takes effect, sticker prices could rise well more than the few hundred dollars that automakers usually charge with each new model year.

Research

Here are the 39 new cars and trucks currently built in Mexico and exported to the U.S. (all plant and production data sourced from Automotive News):

  1. Audi Q5
  2. BMW 3-series
  3. Chevrolet Blazer
  4. Chevrolet Cruze
  5. Chevrolet Equinox
  6. Chevrolet Silverado 1500 Crew Cab
  7. Chevrolet Trax
  8. Dodge Journey
  9. Fiat 500
  10. Ford Fusion
  11. Ford Transit Connect
  12. GMC Sierra 1500 Crew Cab
  13. GMC Terrain (certain models)
  14. Honda Fit
  15. Honda HR-V
  16. Hyundai Accent
  17. Infiniti QX50
  18. Jeep Compass
  19. Kia Forte
  20. Kia Rio
  21. Lincoln MKZ
  22. Mazda 3
  23. Mercedes-Benz A-class
  24. Nissan Frontier (certain models)
  25. Nissan Kicks
  26. Nissan Sentra
  27. Nissan Versa
  28. Nissan Versa Note
  29. Nissan NV200 Cargo
  30. Ram 1500 Regular Cab
  31. Ram 2500/3500/4500/5500
  32. Ram ProMaster
  33. Toyota Tacoma
  34. Toyota Yaris
  35. Volkswagen Beetle
  36. Volkswagen Golf
  37. Volkswagen Golf SportWagen
  38. Volkswagen Jetta
  39. Volkswagen Tiguan

Mexican plants built a quarter of the nearly 17 million light-duty vehicles produced in North America last year. According to the International Trade Administration, U.S. suppliers represent a third of all original equipment parts suppliers in Mexico. That industry, which is the world's fifth-largest, exports 90 percent of OEM parts to the U.S. That 5 percent tariff would apply to every last nut and bolt.

The proposed tariffs also contradict the USMCA, which all three countries agreed to ratify in September, that had promised duty-free trade for all of these current products. Wait a week, and things might change again.

AdChoices
AdChoices

More From Car and Driver

Car and Driver
Car and Driver
Loading...

image beaconimage beaconimage beacon