Implications for U.S. automakers of tariffs on Mexican and Chinese imports and imports, and for the automotive supply chain

She said that the tariffs are going to be paused for one month. Sheinbaum said that her government had agreed to send 10,000 national guard troops to the border to fight drug traffickers. And the U.S. will work to stop weapons trafficking to Mexico, she added.

He said on social media that he was looking forward to participating in the negotiations with the president.

On Tuesday, Trump said a 25% import tax on goods from Mexico and Canada, along with 10% tariffs on goods from China, would go into effect. Trump said he will speak to Trudeau on Monday.

Tariffs would, of course, sharply raise costs on vehicles imported from Mexico, like the Toyota Tacoma, or Canada, like the Chrysler Pacifica. But it would also raise prices for vehicles that are assembled in the U.S., because many of their parts are sourced from companies in Canada or Mexico. Some parts cross borders multiple times — like, say, a wire that is manufactured in the U.S., sent to Mexico to be bundled into a group of wires, and then back to the U.S. for installation into a bigger piece of a car, like a seat.

The largest Mexican exporter is the U.S. car company General GM. The United States can find cars and car parts from Mexico. It’s the largest provider of TV and computer screens and one out of every three refrigerators in the U.S. comes from Mexico.

Canada and Mexico are two of the most important trading partners. The automotive industry has been anxious for updates. Carmakers have built a vast, complicated supply chain that spans North America, with parts crossing back and forth across borders throughout the auto manufacturing process.

Mary Barra spoke to investors in a call last week. The company is prepared to take “no cost or low-cost” actions to mitigate the blow of tariffs, she said. (She didn’t specify, but one possibility would be to stockpile some parts ahead of time, or use existing supplier relationships to source as much as possible from the U.S. instead of other countries.)

“We urge all parties to reach a swift resolution in order to provide clarity and stability for the entire U.S. auto industry,” Jennifer Safavian, President and CEO of Autos Drive America, a trade group representing international automakers, said in a statement Saturday. The Alliance for automotive innovation stated that seamless trade in North America supports a $300 billion auto industry.

In a memo on January 31, MEMA stated that the tariffs ” would have severe consequences” for suppliers, workers and consumers.

But he also dismissed concerns about the economic impacts if tariffs were imposed, telling reporters on Monday that the U.S. is not reliant on Canada. He doesn’t think that we need them to make our cars.

One challenge for automobile manufacturers is that these tariffs are not intended to be permanent, and are instead meant to motivate policy changes. There are some long-term tariffs on China that are meant to help the U.S. companies compete with Chinese competitors or to raise revenue for the federal government.