Trump tariffs can quickly cut car production in North America

Detroit – Approximately third of car production in North America can be reduced by next week 25% of President Donald Trump tariffs In Mexico and Canada, when automakers try to mitigate the cost of expenses, and buyers are detained for purchasing new cars and trucks.

This lost production equates to approximately 20,000 units per day, according to a new analysis from the data identified and predicted by S&P Global Mobility.

Production impact as well as the possibility of dismissal will rise when the tariffs that Trump implemented on TuesdayDo not change or rise.

“We have a new dawn to a certain extent. This is a significant step,” said Stephanie Brinley, the deputy director of the S & P Global Mobility, during the webinar with Automobile Press Association.

S&P Global Mobility Reports on average 25 automakers produce 63 900 light cars in North America per day. Most of them, approximately 65% ​​assembled in the US and then 27% in Mexico and 8% in Canada.

The strike production will vary depending on the location of automakers, vehicles and factories. This may mean that the plant works completely, or that it produces a less specific vehicle that relies on details that can move through several times.

“I think we will see how some plants fall down. We will see some plants, just slow assembly,” Brinley said. “It does not necessarily fit (automakers). It will be a lot about what they need and how much they need.”

Car shares on Tuesday decreased more than a wide market as a result of tariffs.

Tariff is a tax on imports or foreign goods brought to the US. Companies that import goods pay tariffs, and some experts are afraid that companies will simply transfer to consumers any additional costs – raising the cost of vehicles and potentially reducing demand.

Several automakers this week refused to comment directly by 25% of tariffs, based on past comments or trade associations that act on their name.

The US Council on Automobile Policy representing Ford Motor. General Motors and Stellantis -Ass they greatly affect such tariffs-firming that vehicles and details that meet the rigid requirements of internal and regional content, US-Mexico-Canada or USMCA agreement must be exempted from increasing tariffs.

“Our American Automakers, who invest billions in the us to meet these requirements, should not have their competiveness undermined by Tariffs that will raise the boiling vehics in the United States and Stymie American WorkForce, While Competitors from Outside of North American Benefit from Easy Access to Our Home Market, “Said Former Missouri. Matt Blunt, President of AAPC, In statement on Monday night.

A alliance on automotive innovation, a trading group representing the vast majority of automakers selling vehicles in the United States, warned that none of the cars would come out intact, which would increase consumer expenses.

“This is not hypothetically. All automakers will affect these tariffs on Canada and Mexico. Most suggest that the price of some vehicles will increase – by as much as 25 percent – and the negative impact on the cost of the car and the availability of vehicles will be felt almost immediately, “the statement was made in the statement by the CEO of Alliance Automotive Innovation John Bozzella.

Nissan Engine At the end of Monday, he said: “Sustainable tariffs of this scale will have a negative impact on car manufacturers, and we evaluate how we will take action accordingly. We hope that the parties can come to the productive way.”

Several automotive executives and analysts Wall -Restitis described tariffs as inserting unnecessary chaos into the automotive industry.

“President Trump talked a lot about making our American car industry said Jim Farley last month During the Wolfe Research investor conference. “So far, what we see is a great price and a lot of chaos.”

Tariff supporters claim that they are a way of helping the level of trade disparities with the countries, while potentially served as a USMCA lever negotiations, which Trump initially agreed during his first term as president.

However, automakers were relatively quite about the financial consequences they expect from such tariffs, however CEO GM Mary Bar Last month, the automaker believes that it can mitigate the short -term consequences of 30% to 50% of the “no capital” without deployment.

It is difficult to calculate the overall influence that such tariffs will have on the production of North America. Spare parts can intersect between the countries several times in different forms before installing the vehicle.

“This is one of the most flowing situations that the automotive industry has never seen … Apart from a few years of unexpected situations, the situation with supplies,” Brinley said. “The industry itself has developed a little more agile than it was, it was seven years ago … But much is still very uncertain.”

The automotive industry is a complex global system that flourishes on certainty. S&P Global Mobility Reports in the car average 20,000 parts when it is torn to nuts and bolts. Spare parts can come from -wit 50 to 120 countries

For example, Ford F-150 is collected exclusively in America, but has approximately 2,700 major paid parts that exclude many small works, according to Caresoft, An Engineering Batava and Consulting firm.

According to Livonia, Michigan, these parts come from 24 different countries.