Trillium Network for Advanced Manufacturing estimates that around 50% of vehicles sold in Canada in 2023 were imported from the United States. Economy Secretary Marcelo Ebrard assured that General Motors (GM) will not move its production out of Mexico, but will make adjustments to its production in the U.S. due to uncertainty over possible tariffs from Washington. This comment comes after the announcement by Mary Barra, president and CEO of GM, about the possible transfer of part of the vehicle production currently manufactured in Mexico and Canada to the U.S. if Donald Trump imposes tariffs on these neighboring countries.
"No one is going to leave Mexico, because the most productive plants are here; it would be very expensive," Ebrard stated during the 85th Annual Assembly of the American Society of Mexico (Amsoc). He emphasized that GM will take advantage of idle capacities in the U.S. without abandoning its operations in Mexico. These statements coincide with Trump's threats to impose a 25% tariff on Mexican imports and move manufacturing production from Mexico to the U.S. General Motors has reaffirmed its commitment to Mexico, although Barra has mentioned that the company has production capacity in the U.S. to take on part of what is manufactured in Mexico and Canada.
On its part, GM Canada has warned that the tariffs proposed by Trump would harm U.S. economic interests as they would disrupt supply chains and increase prices for consumers. Canadian officials point out that if tariffs were applied to vehicles manufactured in the U.S., they would be less attractive to Canadian consumers, which would be a blow to them, as they are important buyers of vehicles manufactured in the U.S.
In an effort to calm the uncertainty, both Mexican and Canadian officials are working to prevent these tariffs from being implemented, which would be harmful to both economies. Despite this uncertain scenario, Mexico continues to receive investments from companies like Nestlé and Medline, generating optimism in Secretary Ebrard about the strength of the economy in this country.
