Companies likely to be affected by the tariff policy announced by the next US President Trump 🧐🤔

November 26, 2024, 2:30 PM GMT+9

President-elect Trump announced on the 25th that he will impose a 25% tariff on all imports from Mexico and Canada on his first day in office, and an additional 10% tariff on imports from China. More.
Companies with manufacturing facilities in Mexico are as follows:
<Auto Manufacturers in Asia>
* Honda (7267.T)
Supplying 80% of cars produced in Mexico to the U.S. market, COO Shinji Aoyama stated this month that if the U.S. imposes permanent tariffs on cars imported from Mexico, they will have to consider relocating production.

* Nissan Motor Co (7201.T)
Having two factories in Mexico, producing Sentra, Versa, and Kicks for the U.S. market. The production volume in Mexico from January to September this year was approximately 505,000 units. It has not been disclosed how many of these were exported to the U.S. market.
*Toyota Motor (7203.T)
Business in Mexico is relatively small, producing the pickup truck 'Tacoma' at two plants in Mexico. Last year, over 230,000 Tacomas were sold in the United States, accounting for about 10% of the total sales in that market. Previously, Tacomas were produced in the United States, but now all of them are shipped from Mexico. Only Tacomas are produced at the Mexican plants, with most for export to the United States.

*Mazda Motor (7261.T)
Last year, approximately 120,000 units were exported from Mexico to the US market. President Akira Marumoto mentioned this month that the tariff issue is not something that individual companies can solve, and emphasized the need for careful consideration of details before making any decisions.
*Kia Motors from South Korea (000270.KS)
Having a plant in Mexico, Kia exports its own brand autos as well as a small number of Hyundai Motor Company's (005380.KS) sport utility vehicle (SUV) 'Santa Fe' for the US market.

<Tesla's Suppliers>
Leading US electric vehicle (EV) company Tesla (TSLA.O) encourages Chinese suppliers to establish factories in Mexico primarily to supply the gigafactory Tesla plans to build in Mexico in 2023. Although Tesla initially planned to start production in Mexico by early 2025, that target has essentially been abandoned in favor of expanding the Texas plant.
<China's Auto Manufacturers and Suppliers>

Some of China's auto parts manufacturers, such as Yanfeng Automotive Interiors, have been producing in Mexico for years to supply automakers like GM and Toyota Motor, who moved production to Mexico to cut costs.
China's major electric vehicle (EV) player, BYD, is looking for a location to build a factory in Mexico, indicating that the plant will be for supply to the Mexican market and not for producing cars to sell in the USA.
Anhui Jianghuai Automobile Group (JAC) has established a joint venture with Giant Motors since 2017, assembling JAC-branded vehicles in Mexico.

MG, under Shanghai Automotive, announced plans in August to build a factory in Mexico.
<Hon Hai>
Hon Hai Precision Industry, the world's largest electronics contract manufacturer based in Taiwan, is partnering with Nvidia to construct a massive artificial intelligence (AI) server factory in Mexico. Production is set to commence early next year, manufacturing liquid-cooled servers equipped with Nvidia's AI superchip 'Blackwell'.

<Lenovo>
Chinese computer manufacturer, Lenovo (0992.HK), has a large-scale production base in Monterrey, Mexico, which was expanded in 2021. They manufacture servers and other datacenter products there. In 2021, the company announced that all datacenter products for the North American market would be produced in Monterrey.
<LG Electronics>
South Korea's LG Electronics manufactures televisions, consumer electronics, and electric automobile parts at its production base in Mexico. The company announced on the 26th that they are considering various possibilities, including changes in trade policies.

The end.