The Nissan Auto Assembly Plant opened in 1983, marking the first major automotive facility in Tennessee. The plant has a variety of vehicles produced by more than 7,000 people, including the Leaf EV and the Rogue Crossover.
Michael Wayland / CNBC
Detroit – Because President Donald Trump’s 25% tariff In Mexico and Canada, buyers insist on buying new cars and trucks as automakers try to reduce costs.
According to a new analysis of global liquidity by famous data and forecasting company S&P, the lost output is equivalent to about 20,000 units per day.
If tariffs, the impact of production and the possibility of layoffs continue to grow Trump implements it on Tuesdayno changes or filed.
“We have a new dawn, and it’s a big move,” Stephanie Brinley, deputy director of automated intelligence at S&P Global Mobility, said in the webinar Automotive News Association.
S&P Global Mobility reports that the average North American automaker has an average of 63,900 light passenger cars per day. Most of them are assembled in the United States, followed by 27% in Mexico and 8% in Canada.
President Donald Trump signed an executive order in the Oval Office on February 25, 2025. Trump directed the Commerce Department to investigate potential tariffs on copper imports.
Alex Huang | Getty Images News | Getty Images
Affected production will vary by car manufacturer, vehicle and factory location. This could mean that a plant is completely idle, or that it produces vehicles that rely less on parts that can travel across borders multiple times.
“I think we’ll see some plants falling. We’ll see some plants building slowly,” Brynley said. “(Automakers) aren’t necessarily consistent. It’s about what they need and how much they need.”
Auto stocks fell more than the wider market due to tariffs.
General Motors, Ford and Strattis Stocks
Tariffs are taxes on imported or foreign goods entering the United States. Companies that import goods pay tariffs, and some experts worry that these companies will only transfer any additional fees to consumers – increasing the cost of the vehicle and potentially reducing demand.
Several automakers this week declined to comment directly on the 25% tariff, relying on past comments or trading associations to speak on their behalf.
Represented by the U.S. Automotive Policy Council Ford electric motor,,,,, General Motors and Stellantis – All of these tariffs are severely affected – Vehicles and parts that are believed to comply with the strict domestic and regional content requirements of the United States-Mexico-Canada Agreement or the USMCA shall be exempt from tariffs.
“Our U.S. automakers invest billions in the U.S. to meet these requirements and should not damage their competitiveness due to tariffs, which will increase the cost of building vehicles for the U.S. labor, while our competitors benefit greatly from competitors outside North America from the easy access to our housing market,” former Missouri Gov. Matt Matt Blunt, A” Monday night’s statement.
The Automotive Innovation Alliance, which represents the vast majority of U.S. automakers sell cars in the U.S., warns that no automaker will not be unscathed, increasing costs for consumers.
“This is not a hypothesis. All automakers will be affected by these tariffs on Canada and Mexico. Most people think that the price of some vehicle models will rise by as much as 25%, and the negative impact on vehicle prices and vehicle availability will be felt almost immediately.
Nissan Engine “Ongoing tariffs of this scale will have a negative impact on automakers and we are evaluating how to act accordingly. We still hope that both sides can reach an agreement on a productive pathway,” he said late Monday.
Several automotive executives and Wall Street analysts described the tariffs as inserting unwanted chaos into the automotive industry.
“President Trump talks a lot about making our American automotive industry stronger, bringing more production here, and innovation in the United States more, and if his administration can achieve that, it will be one of the most signed achievements,” Ford CEO Jim Farley said last month at Wolf Research Investors Conference. “What we’ve seen so far is a lot of costs and a lot of confusion.”
Supporters of tariffs believe they are a way to help build trade differences with the country, while potentially renegotiating the leverage of the USMCA, which Trump initially served as president during his first term.
Automakers have relatively good financial impacts on the tariffs they expect, but Mary Barra, CEO of GM The automaker said last month that it could mitigate the additional 30% to 50% of the short-term impact “without deploying any funds.”
It is difficult to calculate the total impact of such tariffs on North American automobile production. Parts can cross between borders of various countries in different forms before they are installed in vehicles.
“This is one of the smoothest situations the automotive industry has ever seen … except for a few years of unexpected situations, supply situations,” said Brynley. “The industry itself is developing a little more agile than it was seven or eight years ago…but a lot of it is still very uncertain.”
The automotive industry is a complex global system that can thrive with certainty. S&P Global Mobility Report says that when the vehicle is torn into nuts and bolts, the vehicle has an average of 20,000 parts. Parts may come from anywhere between 50 and 120 countries
For example, the Ford F-150 is specially assembled in the United States, but has about 2700 major billable parts that do not include many small pieces. Engineering benchmarks and consulting companies.
According to Livonia, Michigan, these parts come from at least 24 different countries.
