General Motors, the largest producer of cars in Mexico, won’t provide details on how it would react if President Trump imposes 25 percent tariffs from the two countries.According to The New York Times, General Motors, the largest producer of cars in Mexico, is closely monitoring President Trump’s plans to impose tariffs on imports from Canada and Mexico. However, the company is not making any major changes to its strategy in North America at this time.
During a conference call with reporters on Monday evening, General Motors’ chief financial officer, Paul Jacobson, stated that the company has prepared an “extensive playbook” of potential options in response to the tariffs, but will not implement them unless there is a permanent level of tariffs going forward. Jacobson also emphasized the importance of being prudent and not overreacting to the situation.
President Trump announced last week that he intends to impose a 25 percent tariff on goods from Canada and Mexico starting on February 1st. If this plan is carried out, it could have a significant impact on General Motors and other automakers that produce vehicles and components in these countries. It could also lead to higher prices for vehicles sold in the United States.
In 2024, General Motors produced nearly 900,000 vehicles in Mexico, making it the top carmaker in the country. Most of these vehicles were shipped to the United States, including popular models such as the Chevrolet Silverado, GMC Sierra, and Chevrolet Equinox. The company also produces some Silverados and electric delivery vans in Canada.
During a separate conference call on Tuesday, General Motors’ chief executive, Mary T. Barra, stated that the company may increase production at its U.S. pickup truck plants and send more of the trucks produced in Canada and Mexico to other countries instead of exporting them to the United States. This could help mitigate the impact of the tariffs on the company.
In conclusion, General Motors is closely monitoring the situation and has prepared a plan of action, but will not make any major changes until there is a permanent level of tariffs in place. The company is also considering alternative options, such as increasing production in the United States and exporting vehicles to other countries.
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