- The Honda Prologue and the Chevy Equinox EV have 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, Fact Social, and the transfer might disrupt world 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 file gross sales development this 12 months, pushed by a wave of recent, comparatively reasonably priced fashions. Now this development dangers stalling if Trump follows via 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 weak to a coverage shift.
Common EVs at present just like the Ford Mustang Mach-E, Chevrolet Equinox EV, Blazer EV and Honda Prologue endure remaining meeting in Mexico. Whereas Tesla manufactures its EVs within the U.S., a few of their elements are sourced from Mexico, in keeping with public data posted by the Nationwide Freeway Site visitors Security Administration (NHTSA). InsideEVs scanned these data to see which EVs and PHEVs may very well be the toughest hit.
This checklist covers mannequin 12 months 2024 EVs and PHEVs as many MY2025 vehicles are usually not listed but. Regardless, the proportion of auto content material sourced from different nations provides us an concept of how the tariffs might have an effect on these EVs.
| Mannequin Yr 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 | Ultimate 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 possibly can 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 ready to move the brand new Division of Authorities Effectivity and has donated tens of millions to Trump’s marketing campaign efforts.
Trump additionally stated that he would enhance tariffs on Chinese language-made items by an extra 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 offered stateside.
Some 2.55 million vehicles manufactured in Mexico have been imported to the U.S. in 2023, as per researcher GlobalFleet. Now, the worry of tariffs making vehicles dearer is sending shockwaves throughout the business. 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 fully as they nonetheless supply a small proportion of elements from China. However on a extra constructive word, the Hyundai Ioniq 5 is now manufactured at Hyundai Motor Group’s Metaplant in Savannah, Georgia. The Ioniq 6 is fully 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 proportion of Chinese language elements. The Toyota bZ4x and Lexus RZ additionally use a small proportion of Chinese language components however are predominantly manufactured in Japan.
So if Trump goes via along with his America-first tariffs, the massive winners might be South Korean and Japanese automakers. It will be American EVs, vans and SUVs that may bear the brunt of the brand new duties.
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