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Companies that might be affected by Trump's promised tariffs
Nov 25, 2024 9:30 PM

Nov 26 (Reuters) - President-elect Donald Trump on

Monday pledged tariffs on the United States' three largest

trading partners - Canada, Mexico and China - detailing how he

will implement campaign promises that could trigger trade wars.

Here are companies with a manufacturing presence in Mexico.

ASIAN AUTOMAKERS

Honda Motor sends 80% of its production in Mexico to

the U.S. market and its chief operating officer Shinji Aoyama

warned earlier this month if the U.S. were to impose permanent

tariffs on vehicles imported from Mexico, it would have to think

about shifting production.

Nissan Motor ( NSANF ) has two plants in Mexico where it

makes the Sentra, Versa and Kicks models for the U.S. market. It

produced nearly 505,000 vehicles in Mexico in the first nine

months of this year. The company does not disclose how many of

those were exported to the U.S. market.

Toyota Motor ( TM ) has a smaller footprint in Mexico,

making its Tacoma pick-up truck at two plants there.

It sold more than 230,000 of the Tacoma in the U.S. last

year, representing about 10% of its total sales in that market.

Toyota ( TM ) used to produce the Tacoma in the U.S., but now ships all

of them from Mexico, where the vehicle is the only model it

makes in its plants. Most of the production there is for exports

to the U.S.

Mazda ( MZDAF ) exported around 120,000 vehicles from Mexico

to the United States last year.

Mazda ( MZDAF ) President Masahiro Moro said earlier this month the

tariff issue is "not a problem that can be solved by individual

companies," and it would carefully examine the details before

deciding its response.

South Korea's Kia Corp ( KIMTF ) has a factory in Mexico

that makes its own vehicles and a small number of Santa Fe SUVs

for its affiliate Hyundai Motor ( HYMTF ) for U.S. exports.

TESLA SUPPLIERS

Tesla encouraged its Chinese suppliers to set up

plants in Mexico in 2023 to mainly supply to the U.S.

automaker's planned Gigafactory in Mexico.

Tesla originally planned to start production in Mexico in

early 2025 but has largely walked away from that goal and

shifted to an expansion plan with its Texas plant.

CHINESE AUTOMAKERS AND SUPPLIERS

Some Chinese car component makers such as seat maker Yanfeng

Automotive Interiors have been producing in Mexico for years to

supply to automakers including General Motors ( GM ) and Toyota ( TM ),

which had relocated their capacity to Mexico for lower costs.

Chinese top EV maker BYD has been scouting for

locations to build a plant in Mexico but has said repeatedly

that the factory will serve the domestic market and not produce

cars to be sold in the U.S.

JAC Motors has since 2017 had a joint venture in

Mexico with Giant Motors to assemble JAC brand vehicles.

SAIC-owned MG in August announced plans to build a

plant in the country.

FOXCONN

The world's biggest electronics contract manufacturer Foxconn

is building a giant artificial intelligence server

factory in collaboration with Nvidia ( NVDA ) in Mexico. It

plans to start production early next year, making a

liquid-cooled server containing Nvidia's ( NVDA ) new and powerful

Blackwell family of AI chips.

LENOVO ( LNVGF )

Chinese computer maker Lenovo ( LNVGF ) has a massive

production site in Monterrey that it expanded in 2021. It

manufactures servers and other data center products there and

the company said in 2021 that all of its data center products

for the North American market are produced in Monterrey.

LG ELECTRONICS

South Korea's LG Electronics makes TVs, home

appliances and electric vehicle parts in its Mexico production

sites.

It said on Tuesday it is reviewing various possibilities

including changes in trade policies.

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