11:49 AM EST, 11/27/2024 (MT Newswires) -- Possible tariffs on Mexican and Canadian vehicles and parts imported into the US would have an "outsized impact" on General Motors ( GM ) and Ford Motor ( F ) , Morgan Stanley said Wednesday in a note to clients.

President-elect Donald Trump called for a 25% tariff on products imported from Mexico and Canada late Monday, according to media reports.

This would increase costs on imported vehicles, impacting the two automakers as GM has 26% and 3% of its US sales imported from Mexico and Canada, respectively, while Ford has 17% of US sales imported from Mexico, Morgan Stanley said.

The potential tariffs would also make auto prices even more "out of reach" for US consumers and weaken demand, Morgan Stanley said.

"The US consumer may be resilient, but not strong enough to absorb a potential 25% price increase on imported products," Morgan Stanley said. "If enacted, we would expect to see import volume drop while driving price hikes across domestically assembled vehicles to 'socialize' the impact."

Meanwhile, "relatively less exposed" Asian companies like Toyota Motor ( TM ) and Hyundai-Kia would be "in a position to gain market share," according to the note.

Morgan Stanley said that out of the 16 million US auto market, 17% and 6% of vehicles are imported from Mexico and Canada, respectively.

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