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Will Trump Tariffs Affect Mazda?
March 27 2025 - mstewart@saffordauto.com
Categories New Inventory
Tariffs
  • Tariffs will affect car companies that make vehicles in the U.S. because certain materials and pieces need to be imported
  • It's possible some manufacturers could ramp up production in countries where the U.S. does not currently impose tariffs
  • Experts predict sticker prices to increase by an average of $3,000 per vehicle

North America Tariffs

United States President Donald Trump initially implemented 10% tariffs on goods coming in from China, with an additional 10% tariff on Chinese imports coming a few weeks later. As of a few days ago, he is imposing 25% tariffs on goods imported from Mexico and Canada. But how exactly does this affect your next automobile? These tariffs apply to vehicles built in foreign countries like Mexico and Canada. They also apply to the parts imported from those countries to be used in vehicles assembled in the United States. In this scenario, the importer is responsible for paying the tariff when the car, SUV, or truck comes into the country. The importer can choose to absorb the cost of the tariff, but the cost will be passed to consumers in the form of higher car prices. Tariffs

Will Mazda Be Affected By Tariffs?

There are probably a good amount of auto brands you may still think of as foreign, but they have a strong connection to North America. Honda, Kia, Mazda, Nissan, and Volkswagen all assemble vehicles in Canada and Mexico. About 80% of Hondas built in Mexico are shipped to the United States and Volkswagen runs the largest automotive factory in Mexico. This means that all of these companies will have to pay tariffs on vehicles they import from their foreign factories to sell in the United States. It also appears that the companies that could be most affected by the tariffs are Honda, Toyota, and Mazda. Mazda makes the lowest share of its U.S.-sold vehicles in the U.S., at just around 19%. Mazda has reportedly suggested that it could be moving more of its production to Alabama in response to the tariffs. These price increases could begin as early as April 2nd, 2025 when tariffs on Canada and Mexico go into effect.
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