Trump announces tariffs that’ll directly impact the auto industry

President-elect Donald Trump announced on his social media platform his initial plans for tariffs that he plans to implement via executive order as soon as he’s sworn in. Those tariffs will likely have a devastating impact on the U.S. auto industry.

“On January 20th, as one of my many first Executive Orders, I will sign all necessary documents to charge Mexico and Canada a 25% Tariff on ALL products coming into the United States, and its ridiculous Open Borders,” Trump posted on his Truth Social platform. “This Tariff will remain in effect until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country!”

While a tariff on goods from Mexico seemed obvious, regardless of whether or not it violates international trade agreements, the addition of Canada to the list was a bit of a surprise. The Fentanyl boogieman comes for everyone, it appears.

What does that mean? Well it depends on the automaker, as some more heavily rely on production in Canada and Mexico than others, but it hurts everyone as goods to build those cars come from those countries even if final assembly is in the U.S.

But for some basic examples, the refreshed 2025 Ford Maverick carries a $26,395 starting retail price. That doesn’t include destination charges, which wouldn’t necessarily change. That truck is assembled in Mexico, and if Ford passes on the tariff completely to the customer that basically increases that starting price to $32,994.

The Nissan Sentra, the cheapest new car in the United States (we’re operating on the assumption that the Versa is dead, but not as a result of tariffs), starts at $22,730 pre-destination. Since that is one Nissan product sold in the U.S. that is assembled in Mexico, that starting price jumps to $28,413.

Stellantis products like the Chrysler Pacifica and upcoming Dodge Charger are built in Windsor, Ontario. Many GM products are assembled in the Great White North. Even vehicles that are assembled in the United States aren’t safe, as many components come from suppliers in Canada and Mexico.