- The Honda Prologue and the Chevy Equinox EV have been among the best-selling non-Tesla EVs within the third quarter.
- They’re each assembled in Mexico and threat being affected by President-elect Donald Trump’s 25% tariff on all items imported from Mexico and Canada.
- Teslas are all U.S. made. However roughly 20-25% of the elements content material in all Teslas is Mexico-sourced.
President-elect Donald Trump has pledged to signal an govt order for a sweeping 25% tariff on all items imported from Mexico and Canada when he takes workplace on January 20. Trump revealed the plan on Monday on his social media platform, Fact Social, and the transfer may disrupt world commerce and probably trigger a major blow to the U.S. EV market.
EVs are gaining momentum within the U.S. with automakers reporting consecutive quarters of document gross sales progress this 12 months, pushed by a wave of recent, comparatively inexpensive fashions. Now this progress dangers stalling if Trump follows via his proposed tariffs. A number of automakers, together with Normal Motors, Tesla, Ford, Honda, BMW and Audi rely closely on manufacturing amenities throughout the southern border, making them significantly weak to a coverage shift.
In style EVs at the moment just like the Ford Mustang Mach-E, Chevrolet Equinox EV, Blazer EV and Honda Prologue endure remaining meeting in Mexico. Whereas Tesla manufactures its EVs within the U.S., a few of their parts are sourced from Mexico, in keeping with public data posted by the Nationwide Freeway Site visitors Security Administration (NHTSA). InsideEVs scanned these data to see which EVs and PHEVs may very well be the toughest hit.
This record covers mannequin 12 months 2024 EVs and PHEVs as many MY2025 automobiles aren’t listed but. Regardless, the proportion of auto content material sourced from different international locations offers us an thought of how the tariffs might have an effect on these EVs.
| Mannequin 12 months 2024 EVs/PHEVs | Share of content material from the U.S. or Canada | Share of content material from Mexico | Share of content material from China | Remaining Meeting |
| Ford Mustang Mach-E | 26% | 18% | 51% | Mexico |
| Chevy Blazer EV | 62% | – | 18% | Mexico |
| Chevy Equinox EV | 62% | – | 18% | Mexico |
| Honda Prologue | 38% | 16% | Â | Mexico |
| Acura ZDX | 63% | 19% | 16% | U.S. |
| Tesla Mannequin 3 | 35-75% | 20% | 40% (LR solely) | U.S. |
| Tesla Mannequin Y | 70% | 20% | – | U.S. |
| Tesla Mannequin S | 65% | 15% | – | U.S. |
| Tesla Mannequin X | 60% | 20% | – | U.S. |
| Cybertruck | 65% | 25% | – | U.S. |
| Ford Escape PHEV | 32% | 25% | – | U.S. |
| Lincoln Corsair PHEV | 47% | 25% | – | U.S. |
| Audi Q5 55 e | – | 51% | – | Mexico |
As you may see, Tesla is not immune to those tariffs. Nonetheless, it stays to be seen whether or not Trump will make an exception for the automaker. CEO Elon Musk is ready to move the brand new Division of Authorities Effectivity and has donated thousands and thousands to Trump’s marketing campaign efforts.
Trump additionally stated that he would enhance tariffs on Chinese language-made items by an additional 10%. The U.S. has already imposed a 100% tariff on EVs made in China and has additionally banned Chinese language software program from being utilized in automobiles bought stateside.
Some 2.55 million automobiles manufactured in Mexico have been imported to the U.S. in 2023, as per researcher GlobalFleet. Now, the concern of tariffs making automobiles costlier is sending shockwaves throughout the trade. Share costs of a number of U.S. and European automakers, together with Normal Motors, Ford, Volkswagen and Toyota fell on Tuesday within the face of uncertainty.
Japanese and Korean EVs seem comparatively extra insulated from Trump’s tariffs, however not totally as they nonetheless supply a small share of parts from China. However on a extra constructive observe, the Hyundai Ioniq 5 is now manufactured at Hyundai Motor Group’s Metaplant in Savannah, Georgia. The Ioniq 6 is totally made in Korea.
The Genesis G80 Electrified, GV60, Ioniq 5 N, Hyundai Kona Electrical and the Kia EV9 and Kia Niro EV seem to make use of a small share of Chinese language parts. The Toyota bZ4x and Lexus RZ additionally use a small share of Chinese language elements however are predominantly manufactured in Japan.
So if Trump goes via along with his America-first tariffs, the massive winners will probably be South Korean and Japanese automakers. It will be American EVs, vans and SUVs that may bear the brunt of the brand new duties.
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