The tariffs for cars and auto parts, which President Trump announced on Wednesday, will have far -reaching effects on car manufacturers in the USA and abroad.
However, there will be important differences based on the circumstances of each company.
Tesla
The company of Mr. Trump's familiar Elon Musk makes the cars that sell it in the United States in factories in California and Texas. As a result, it may be the least exposed to tariffs.
However, the company buys parts from other countries – according to the National Highway Traffic Safety Administration, about a quarter of components in its cars come from abroad.
In addition, Tesla is fighting with falling sales all over the world, also because Mr. Musk's political activities and statements have switched off moderate and liberal cars. Some countries could try to take revenge against Mr. Trump's tariffs by aiming Tesla. Some Canadian provinces have already stopped offering incentives for Tesla electric vehicles purchases.
General Motors
The largest US car manufacturer imports many of its best -selling and profitable cars and trucks, especially from Mexico, where there are several large factories that bring out models such as The Chevrolet Silverado. Around 40 percent of GM sales in the United States last year were gathered abroad. This could make the company susceptible to the tariffs.
But in contrast to some other car manufacturers, GM has made strong profits in recent years and is viewed by analysts as a good financial foundation. This could help to survive the tariffs better than other companies, especially if the import taxes are removed or watered down by Mr. Trump.
Ford engine
Ford is much less dependent on imported cars than many of its competitors. It makes about 80 percent of the vehicles that are selling in the USA in the USA. As a result, it would be relatively insulated from the 25 percent tariffs for imported vehicles.
However, the company is still dependent on foreign factories for important parts such as engines. A Ford factory in Ontario, for example, makes engines for some of its pickup trucks. Ford has lost billions of dollars of electric vehicles. One of the three battery-operated models, the Mustang Mach-E, is made in a factory near Mexico City.
Sternantis
The company, which belongs to Chrysler, Dodge, Jeep and RAM, uses overseas in Mexico, especially in Mexico, to put together some popular models such as RAM pickup trucks. Another model, the Chrysler Pacifica Minivan, is made in Ontario.
Stellantis, which was created by the fusion of Fiat Chrysler and Peugeot 2021, also has to struggle with sluggish sales and is looking for a new Chief Executive. These challenges, together with some others like Nissan, issued a higher risk, especially if the tariffs last for months or years.
Toyota
Like other Japanese car manufacturers, Toyota is very dependent on the USA and sold 2.3 million cars in the country last year. Around a million of these vehicles were produced in other countries, many of which in Canada, Mexico and Japan. This could be a big problem for the company and the car manufacturers like Subaru and Mazda, with which Toyota is working closely.
But Toyota, the largest car manufacturer in the world, is in a better position than other car manufacturers. It is profitable and regarded by analysts as one of the best companies in the global auto industry.
Volkswagen
The largest car manufacturer in Europe could really be injured by tariffs, since it only has one factory in the USA in Chattanooga, Tennessee, where it does the vehicles from Atlas and ID.4 Sport Utility. It imports many of its cars, including Audis and Volkswagen from Mexico and Porsches from Germany.
The company has been struggling financially in recent years because its sales in China has dropped sharply, where domestic automakers have grown quickly by introducing many affordable electrical and hybrid vehicles. Volkswagen had hoped to get in line with the United States, but Mr. Trump's youngest tariffs were able to make this difficult task even more difficult.
Hyundai and being
The South Korean stare data has achieved impressive sales gains in the United States in recent years. The companies have also invested in a new electric vehicle factory in Georgia that increases production, which could help them avoid tariffs for some models.
On Monday, the head of Hyundai, Euisun Chung, announced in the White House with Mr. Trump that his company would invest another 21 billion US dollars in the United States, including a new steel factory in Louisiana. Although Hyundai and Kia now have three factories in Georgia and Alabama, they will not be able to avoid tariffs on hundreds of thousands of cars that they import into the USA. Many of these vehicles came from South Korea, which negotiated a trade agreement with the United States in 2007, which was updated by Mr. Trump during the first term.