- Auto-industry tariffs coming in April, may bring immediate price hikes
- Mexico makes many U.S.-bound EVs, buys few of them
- EV tax credit still potentially applies to models made in Mexico and Canada
The specter of auto tariffs affecting models made in Mexico and Canada has not abated. And as industry experts proceed to suggest, there could also be rocky times ahead for vehicle affordability.
Although delayed, the auto-industry tariffs are coming soon, as are additional tariffs on China and the EU, President Donald Trump revealed Monday.
“We’ll be announcing that fairly soon, over the following few days probably,” said Trump, as quoted by Politico. “After which April 2 comes. That will probably be reciprocal tariffs.”
In line with the report, the U.S. imported $471 billion in automotive products in 2024, which incorporates $214 in passenger cars.
Mexico builds many U.S.-bound EVs but buys few of them—and EVs are a really small portion of the nearly 1.1 million latest cars sold in Mexico. A scarcity of serious charging infrastructure, combined with affordability, remain obstacles.
That’s because EVs generally remain too expensive for that market—although Mexico has in recent months announced plans to develop its own EV supply chain because it’s also pushing ahead with a federally subsidized EV that may cost a little as little as $4,400.
2025 Chevrolet Blazer EV
Under the Biden-era Inflation Reduction Act, tax credits of as much as $7,500 stipulated requirements for North American assembly and sourcing, in policy that went together with the United States-Mexico-Canada Agreement (USMCA) deal made in the course of the first Trump term and closely following NAFTA policy that preceded it. Trump has individually indicated a desire to eliminate the EV tax credit, which a research group recently emphasized would have a devastating effect on U.S. manufacturing.
Mexico currently builds lots of of hundreds of U.S.-bound vehicles annually—a lot of them reasonably priced entry-level models. Automakers have already cautioned that tariffs on Mexico and Canada would result in immediate price hikes in some cases, in addition to the potential for some models to be pulled from the market.
In line with a Reuters report from December, citing estimates from Wells Fargo, a 25% tariff on parts from Canada and Mexico would make vehicles costlier, EV or not. Specifically, it’d add $2,100 in cost to consumers for U.S.-assembled vehicles alone, while models made in Canada or Mexico could find yourself costing $8,000 to $10,000 more.
It could affect the viability of a few of the domestic automakers as well. GM is counting on imports from Canada and Mexico for each profitable full-size trucks and various EVs. Mexico Business News noted that GM alone assembled greater than 889,000 vehicles in Mexico, with about 653,000 of those shipped to the U.S.
2025 Ford Mustang Mach-E Rally
EVs from Mexico
As called out by the newest list from the federal government per American Automobile Labeling Act (AALA) labeling requirements, listed here are the plug-in models currently made in Mexico:
Audi Q5 S line 55 e (plug-in hybrid)
Ford Mustang Mach-E (EV)
Chevrolet Blazer EV
Chevrolet Equinox EV
Honda Prologue (EV)
2025 Honda Civic Hybrid
Hybrids from Canada
And listed here are the hybrids made in Canada:
Civic Hybrid 5-dr
Lexus RX350h
Lexus RX500h
This Article First Appeared At www.greencarreports.com
