- Auto-industry tariffs coming in April, may bring immediate price hikes
- Mexico makes many U.S.-bound EVs, buys few of them
- EV tax credit still potentially applies to models made in Mexico and Canada
The threat of auto tariffs affecting models made in Mexico and Canada has not abated. And as industry experts continue to suggest, there may be rocky times ahead for vehicle affordability.
Although delayed, the auto-industry tariffs are coming soon, as are additional tariffs on China and the EU, President Donald Trump revealed Monday.
“We’ll be announcing that fairly soon, over the next few days probably,” said Trump, as quoted by Politico. “And then April 2 comes. That will be reciprocal tariffs.”
According to the report, the U.S. imported $471 billion in automotive products in 2024, which includes $214 in passenger cars.
Mexico builds many U.S.-bound EVs but buys few of them—and EVs are a very small portion of the nearly 1.1 million new cars sold in Mexico. A lack of significant charging infrastructure, combined with affordability, remain obstacles.
That’s because EVs generally remain too expensive for that market—although Mexico has in recent months announced plans to develop its own EV supply chain as it’s also pushing ahead with a federally subsidized EV that might cost as little as $4,400.
2025 Chevrolet Blazer EV
Under the Biden-era Inflation Reduction Act, tax credits of up to $7,500 stipulated requirements for North American assembly and sourcing, in policy that went along with the United States-Mexico-Canada Agreement (USMCA) deal made during the first Trump term and closely following NAFTA policy that preceded it. Trump has separately indicated a desire to eliminate the EV tax credit, which a research group recently emphasized would have a devastating effect on U.S. manufacturing.
Mexico currently builds hundreds of thousands of U.S.-bound vehicles annually—many of them affordable entry-level models. Automakers have already cautioned that tariffs on Mexico and Canada would lead to immediate price hikes in some cases, as well as the potential for some models to be pulled from the market.
According to a Reuters report from December, citing estimates from Wells Fargo, a 25% tariff on parts from Canada and Mexico would make vehicles more expensive, EV or not. Specifically, it might add $2,100 in cost to consumers for U.S.-assembled vehicles alone, while models made in Canada or Mexico could end up costing $8,000 to $10,000 more.
It could affect the viability of some of the domestic automakers as well. GM is relying on imports from Canada and Mexico for both profitable full-size trucks and various EVs. Mexico Business News noted that GM alone assembled more than 889,000 vehicles in Mexico, with about 653,000 of those shipped to the U.S.
2025 Ford Mustang Mach-E Rally
EVs from Mexico
As called out by the latest list from the federal government per American Automobile Labeling Act (AALA) labeling requirements, here are the plug-in models currently made in Mexico:
Audi Q5 S line 55 e (plug-in hybrid)
Ford Mustang Mach-E (EV)
Chevrolet Blazer EV
Chevrolet Equinox EV
Honda Prologue (EV)
2025 Honda Civic Hybrid
Hybrids from Canada
And here are the hybrids made in Canada:
Civic Hybrid 5-dr
Lexus RX350h
Lexus RX500h