(Energy Analytics Institute, 27.Nov.2024) — A plan by US president-elect Donald Trump to impose a 25% tariff on Mexican imports into the US would impact three key US automakers—GM, Stellantis and Ford—and result in a massive loss of employment, Mexico’s Secretary of Economy Marcelo Luis Ebrard said from Mexico City, Mexico.
“If Mexico imposes a similar tariff on US imports the principal companies impacted would again be GM, Stellantis and Ford,” Ebrard said 27 Nov. 2024 during his participation in a morning press conference with Mexico’s President Claudia Sheinbaum Pardo.
Ebrard said that 88% of the pickups in the US come from Mexico, of which the main brands included GM, Stellantis and Ford.
Ebrard said the tariff would impact consumers as well as the companies. Ebrard said the estimated impact on the three auto producers would result in the loss of around 400,000 jobs in the US and a reduction in economic growth in the US.
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Additionally, Trump’s 25% tariff is likely to result in a $3,000 increase in the price of vehicles produced by the three brands, in the best case scenario, Ebrard said.
Ebrard said the vision of the Sheinbaum government is to convert the North American block into a region that is one of the most secure, productive and competitive in the world.
Inter-regional trade between Mexico, US and Canada between Jan.-Sep. 2024 amounted to $1,775.5bn, Ebrard said.
“The choice on the table is between fragmenting ourselves with tariffs, weakening our economies or building together a strong, competitive region ready to lead the future,” Ebrard said.
For her part, Sheinbaum said during the press conference that Trump’s proposed tariff would also impact Canada as well, which would receive a similar tariff.
“Canada needs us,” Sheinbaum said during the conference, responding to a question from the press.
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By Piero Stewart. © Energy Analytics Institute (EAI). All Rights Reserved.
