The US has officially imposed 25% tariffs on imports from Canada and Mexico, alongside a 20% tariff on China. With OEMs and suppliers already navigating tight margins, these measures are set to significantly increase costs, disrupt supply chains, and force strategic shifts in North American manufacturing and logistics.
US president Donald Trump has imposed his previously threatened 25% tariffs against Canadian and Mexican imports, as well as a further 10% tariff on China (on top of an earlier 10% increase on tariffs on China).
Already, Canada and China have retaliated against the tariffs. Canada has vowed to impose 25% tariffs against $107 billion worth of US goods, while China has announced 10-15% tariffs on US imports. Mexico has not yet responded to the tariffs, but its president Claudia Sheinbaum previously promised to retaliate.
Read more: Trump’s tariff timeline
The confirmation of the tariffs being impose is likely to throw the automotive supply chain into chaos. The sector will face massive cost increases as both finished vehicles and parts will be taxed, with the 25% tariffs Trump threatened on steel and aluminium parts. On top of this, components cross the US-Mexico border multiple times before they get installed in a vehicle.
It is unclear whether production will halt while OEMs reassess logistics flows.
We will update this story as more information becomes available…
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Currently readingTrump imposes 25% tariffs on Canada and Mexico, and 20% tariffs on China, escalating trade war
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