President-elect Donald Trump vowed on Monday to impose tariffs on the United States’ three largest trading partners—Canada, Mexico, and China—outlining plans to fulfill campaign promises that could potentially lead to trade conflicts.
Here’s a look at companies with manufacturing operations in Mexico:
AUTOMAKERS
- Honda Motor: Approximately 80% of Honda’s production in Mexico is exported to the U.S. market. Chief Operating Officer Shinji Aoyama warned on November 6 that the company might consider relocating production if permanent tariffs are placed on vehicles imported from Mexico.
- Nissan Motor: Nissan operates two plants in Mexico that produce the Sentra, Versa, and Kicks models for the U.S. market. In the first nine months of 2024, it manufactured nearly 505,000 vehicles in Mexico, though the company has not disclosed how many were shipped to the U.S.
- Toyota Motor: Toyota manufactures its Tacoma pickup trucks at two Mexican plants, accounting for more than 230,000 units sold in the U.S. in 2023—around 10% of its total U.S. sales. Previously, Tacoma trucks were made in the U.S., but now all production has shifted to Mexico.
- Mazda: Mazda exported roughly 120,000 vehicles from Mexico to the U.S. in 2023. On November 7, Mazda President Masahiro Moro emphasized that tariffs present a challenge that cannot be addressed by individual companies alone, adding that the company would carefully evaluate the situation before responding.
- Kia Corp: South Korea’s Kia has a Mexican factory that produces its own vehicles and a limited number of Hyundai Motor’s Santa Fe SUVs for U.S. exports.
GERMAN AUTOMAKERS
- Volkswagen: Volkswagen’s Puebla factory is Mexico’s largest auto plant and a key facility for the VW Group, producing nearly 350,000 vehicles in 2023, including the Jetta, Tiguan, and Taos, all for export to the U.S.
- Audi: Audi’s San Jose Chiapa plant produces the Q5 and employs over 5,000 workers. In 2023, it manufactured nearly 176,000 vehicles, with about 40,000 exported to the U.S. in the first half of 2024, according to the Mexican Automotive Manufacturers Association.
- BMW: BMW’s San Luis Potosi plant produces models such as the 3 Series, 2 Series Coupe, and M2, with most output destined for the U.S. and global markets. Starting in 2027, the plant will manufacture the all-electric ‘Neue Klasse’ models.
TESLA SUPPLIERS
In 2023, Tesla encouraged its Chinese suppliers to establish operations in Mexico to support its planned Gigafactory there. While Tesla initially planned to begin production in Mexico in early 2025, it has since focused on expanding its Texas facility.
CHINESE AUTOMAKERS AND SUPPLIERS
- Several Chinese car parts manufacturers, such as Yanfeng Automotive Interiors, have been operating in Mexico for years, supplying automakers like General Motors and Toyota, which shifted production to Mexico to cut costs.
- Chinese electric vehicle (EV) leader BYD has been exploring potential locations for a Mexican plant but has stated that the factory would primarily serve the domestic market rather than producing vehicles for the U.S. market.
