(Reuters) – U.S. President Trump said he may impose 25% tariffs on Canada and Mexico starting Feb. 1, sending shares of several Asian automakers and battery makers lower in trading on Tuesday.
These are the companies that could be affected (by sector, in alphabetical order):
AUTOMOBILE MANUFACTURERS
Audi
Volkswagen’s (ETR: ) Audi plant in San Jose Chiapa, Mexico produces the Q5, employing just over 5,000 people. Almost 176,000 cars were produced in 2023, its website showed. In the first half of 2024, nearly 40,000 cars were exported to the US, according to the Mexican Association of Automobile Manufacturers.
BMW (ETR:)
BMW’s plant in San Luis Potosi, Mexico produces the 3 Series, 2 Series Coupe and M2, with nearly all production going to the U.S. and other markets around the world, according to the automaker. From 2027, they will produce a fully electric “Neue Klasse” model line.
BYD (SZ:)
Chinese electric vehicle maker BYD has been looking for locations to build a factory in Mexico, but has repeatedly said the plant will serve the domestic market, not make cars for sale in the US
HONDA ENGINE
Honda (NYSE: ) Motor sends 80% of its Mexican production to the U.S. market, and its chief operating officer Shinji Aoyama warned in November that he would have to consider shifting production if the U.S. imposed permanent tariffs on vehicles imported from the country.
JAC MOTORS
Since 2017, China’s JAC Motors has a joint venture in Mexico with Giant Motors to assemble JAC brand vehicles. SAIC-owned MG announced plans to build a factory in the country in August.
KIA CORP
South Korea’s Kia Corp has a plant in Mexico that produces its own vehicles and a small number of Tucson SUVs for its subsidiary Hyundai Motor ( OTC: ) for export to the US.
MAZDA
In 2023, Mazda exported about 120,000 vehicles from Mexico to the United States. Mazda President Masahiro Moro said in November that the tariff issue was “not a problem that can be solved by individual companies” and that he would carefully examine the details before deciding on his response.
NISSAN ENGINE
Nissan (OTC:) Motor has two plants in Mexico where it produces the Sentra, Versa and Kicks models for the US market. It produced nearly 505,000 vehicles in Mexico in the first nine months of 2024. The company did not disclose how many were exported to the US market.
STELLANTIS
Stellantis (NYSE: ) operates two assembly plants in Mexico: Saltillo, which makes Ram pick-ups and vans, and Toluca, for the Jeep Compass midsize SUV. The Franco-Italian group also owns two assembly plants in Ontario, Canada: Windsor, where it produces Chrysler models, and Brampton, which is currently undergoing retraining and is slated to resume production in 2025 with the new Jeep model.
TOYOTA MOTOR
Toyota Motor (NYSE: ) builds its Tacoma pickup truck at two plants in Mexico. It sold more than 230,000 of them in the US in 2023, which represents about 10% of the total sales in that market. Toyota used to build the Tacoma in the US, but now ships them all from Mexico, which accounts for most of the factory’s production.
VOLKSWAGEN
Volkswagen’s plant in Puebla is the largest car plant in Mexico and one of the largest in the VW Group, according to the automaker’s website. Almost 350,000 cars were produced there in 2023, including the Jetta, Tiguan and Taos, all for export to the US
AUTO SUPPLIERS
AUTOLIV
Sweden’s Autoliv (NYSE: ), the world’s largest maker of airbags and seat belts, said it has about 15,000 employees in Mexico, declining to comment on U.S. exports from there.
MICHELIN
Tire manufacturer Michelin (EPA:) has two plants in Mexico – Queretaro and Leon – and three in Canada: Pictou, Bridgewater and Waterville.
YANFENG
Chinese seat maker Yanfeng Automotive Interiors has been manufacturing in Mexico for years to supply automakers including General Motors (NYSE: ) and Toyota.
OTHER
Other powertrain manufacturers in Mexico serving automotive production for the U.S. market include Italian tire maker Pirelli, Italian premium brake maker Brembo (BIT:) and the Italian Eurogroup Laminations.
Eurogroup Laminations, whose clients include Tesla (NASDAQ: ), specializes in stators and rotors, two key components of electric motors and generators.
US carmaker Tesla has encouraged its Chinese suppliers to set up factories in Mexico in 2023 to mainly supply the planned factory in Mexico.
Tesla originally planned to start production in Mexico in early 2025, but has largely shifted to a plan to expand its factory in Texas.
ELECTRONICS
FOXCONN
The world’s largest electronics contract manufacturer, Taiwan Foxconn (SS: ), is building a massive artificial intelligence server factory in collaboration with Nvidia (NASDAQ: ) in Mexico. It plans to begin production in early 2025, making a liquid-cooled server that will feature Nvidia’s new and powerful Blackwell family of AI chips.
LENOVO
Chinese computer maker Lenovo makes servers and other data center products at a massive site in Monterrey, Mexico, which it expanded in 2021. At the time, it said all of its data center products for the North American market were made in Monterrey.
LG ELECTRONICS
South Korea’s LG Electronics makes TVs, home appliances and EV parts at its Mexican facilities. In November, it said it was considering options, including changes in trade policy.
SAMSUNG ELECTRONICS
South Korea’s Samsung Electronics (KS:) manufactures televisions and home appliances in Mexico and exports them to the US
FOOD AND BEVERAGES
CAMPARI
Italian spirits group Campari ( LON: ) has three production sites in Mexico, the main one making tequila under its Espolon brand and one in Canada, where it makes Canadian whiskey brand Forty Creek, according to its latest sustainability report.
According to Citi, Campari imports 27% of its US sales from Mexico and Canada.
PACKAGED GOODS
P&G AND UNILEVER
Procter & Gamble (NYSE: ) and Unilever (LON: ) are among the big packaging companies exposed to tariffs on imports from Mexico, data show.
About 10% of P&G’s shipments in the three months to the end of September were from Mexico, according to import data provider ImportYeti. About 2% of Unilever’s marine imports to the United States come from Mexico, the data show.
Both companies and other large groups of consumers such as Pepsi (NASDAQ: ) and Lay’s chips, have jointly invested hundreds of millions of dollars in their Mexican supply chains.
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