A Nissan Motor Co. plant in the Mexican state of Aguascalientes (Pr

Auto industry braces for Trump’s North American tariffs | The Asahi Shimbun: Breaking News, Japan News and Analysis

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2024-11-27 18:30:10

A Nissan Motor Co. plant in the Mexican state of Aguascalientes (Provided by Nissan Motor Co.)

Japanese automakers and suppliers with production bases in Mexico and Canada face being hit with punitive tariffs after Donald Trump takes office in January.

In a social media post on Nov. 25, the U.S. president-elect vowed to raise tariffs on imports from the country’ s two neighbors to 25 percent.

Under the United States-Mexico-Canada Agreement (UMCA), imports and exports among the three countries are exempt from tariffs under certain conditions.

Toyota Motor Corp., Honda Motor Co., Nissan Motor Co. and Mazda Motor Corp. all operate production plants in Mexico, where labor costs are relatively low.

Toyota and Honda also assemble vehicles in the Canadian province of Ontario, an auto industry hub close to the U.S. states of Michigan and Ohio.