Trump tariffs would make vehicles more expensive, EV or not

• Tariffs imports from Canada and Mexico could add $2,100 for U.S.-assembled vehicles
• Mexico-made pickup trucks might cost $8,000-$10,000 more
• Proposed tariffs could also drive up the cost for EVs like $35k Chevy Equinox EV

The incoming Trump administration’s proposed 25% tariffs on all imports from Canada and Mexico could hit the Detroit Three automakers hard, raising the prices of not only EVs but also the gasoline pickup trucks that are those automakers’ lifelines, according to recent reporting from Reuters.

GM would likely see the biggest impact from these policies, which are steeped in the anti-immigration rhetoric that was a major feature of Trump’s campaign message but would disrupt long-established North American supply chains, according to Reuters.

GM is expected to import more than 750,000 vehicles from Canada and Mexico this year, according to that Reuters report, which cites business analytics firm GlobalData. About half of those will be the highly-profitable full-size gasoline pickups that contribute most to the automaker’s bottom line.

2025 Chevrolet Equinox EV

Separately, Reuters also notes that tariffs could affect the price of the Chevrolet Equinox EV, currently GM’s most affordable electric model. It’s assembled in Mexico and costs $34,995 before a $7,500 federal EV tax credit Trump is expected to take away.

Mexico is a major EV manufacturing hub, with more EVs going to the U.S. than are sold domestically—but that’s just part of an overall trend that relates to all types of vehicles and the parts that go into them. As Reuters states, 90% of light vehicles and 43% of auto parts manufactured in Mexico are exported to other parts of North America. GM, Ford, Nissan, and Stellantis lead with exports from Mexico to the U.S., but Toyota, VW, and Honda each brought in more than 100,000 vehicles from Mexico just in the first six months of 2024. 

The Trump tariffs would apply to both complete vehicles and parts. A 25% tariff on parts from Canada or Mexico would add $2,100 in cost to consumers for U.S.-assembled vehicles, and $8,000-$10,000 for vehicles also assembled in Canada or Mexico, according to Reuters, citing Wells Fargo estimates.

Ford Mustang Mach-E assembly – Mexico

Trump voters may feel that financial pain more than most. While many pickup trucks are assembled in the U.S., a good share of popular models, including not only GM’s Chevrolet Silverado and GMC Sierra, but also the Ford Maverick, Ram 1500, and Toyota Tacoma are built in Mexico. So the vehicles most popular in rural areas that overwhelmingly voted for Trump will also be impacted by tariffs, Reuters points out.

Trucks are at least profitable, offering a chance that automakers can absorb the cost increases rather than pass them on to consumers. That may not be the case with more affordable compact cars like the Nissan Sentra, longtime industry analyst Sam Fiorani noted to Reuters. EVs could follow the same price-hike path as affordable gas cars.