- The Honda Prologue and the Chevy Equinox EV had been a few of 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 components content material in all Teslas is Mexico-sourced.
President-elect Donald Trump has pledged to signal an government 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, Reality Social, and the transfer may disrupt international 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 report gross sales development this yr, pushed by a wave of latest, comparatively reasonably priced fashions. Now this development dangers stalling if Trump follows by his proposed tariffs. A number of automakers, together with Common Motors, Tesla, Ford, Honda, BMW and Audi rely closely on manufacturing amenities throughout the southern border, making them notably susceptible to a coverage shift.
Fashionable EVs presently just like the Ford Mustang Mach-E, Chevrolet Equinox EV, Blazer EV and Honda Prologue bear ultimate meeting in Mexico. Whereas Tesla manufactures its EVs within the U.S., a few of their elements are sourced from Mexico, in accordance with public information posted by the Nationwide Freeway Visitors Security Administration (NHTSA). InsideEVs scanned these information to see which EVs and PHEVs might be the toughest hit.
This checklist covers mannequin yr 2024 EVs and PHEVs as many MY2025 vehicles are usually not listed but. Regardless, the share of auto content material sourced from different nations provides 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% | 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’ll be able to 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 about to go 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 improve 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 vehicles bought stateside.
Some 2.55 million vehicles manufactured in Mexico had been imported to the U.S. in 2023, as per researcher GlobalFleet. Now, the concern of tariffs making vehicles costlier is sending shockwaves throughout the trade. Share costs of a number of U.S. and European automakers, together with Common 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 elements from China. However on a extra optimistic 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 elements. The Toyota bZ4x and Lexus RZ additionally use a small share of Chinese language components however are predominantly manufactured in Japan.
So if Trump goes by together with his America-first tariffs, the large winners can be South Korean and Japanese automakers. It’s going to be American EVs, vans and SUVs that can bear the brunt of the brand new duties.
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