Trump announced the date when the trade war will officially begin.

Trump reiterated his tax threat against the two major trading partners of the U.S. just hours after taking the oath of office. Trump promised to generously use tariffs as a tool of foreign policy.

Trump accused Canada and Mexico of failing to stop illegal immigration and drug trafficking into the U.S. "We are considering a 25% rate for Mexico and Canada because they are allowing a large number of people to enter the country and the importation of fentanyl (a type of drug)," he said. The U.S. President also added that he was considering implementing these new tariffs on February 1 for these two countries.

Some analysts warned that the increase in tariffs would raise consumer prices and negatively impact GDP.

AUTOMOBILE MANUFACTURERS IN MEXICO AND THEIR IMPACTS

Trump's statements could directly affect the export activities of major automobile brands manufacturing in Mexico towards the U.S. Here are the prominent manufacturers:

Volkswagen: Volkswagen, which produced 176,000 Audi Q5s at its San Jose Chiapa plant in 2023, exported a significant portion of these vehicles to the U.S. At its Puebla facility, 350,000 vehicles were produced; the Jetta, Tiguan, and Taos models were completely sent to the U.S.

BMW: BMW, which produces the 3 Series and M2 models at its San Luis Potosi plant, is focused on the U.S. The company plans to produce the fully electric Neue Klasse series at this facility starting in 2027.

Mazda: Mazda, which exported 120,000 vehicles from Mexico to the U.S. in 2023, considers the new tariff decision as "a matter that needs detailed analysis."

Toyota: Toyota, which only produces the Tacoma model in Mexico, exported 230,000 of these vehicles to the U.S.

AUTOMOBILE SUPPLIERS ALSO IN THE CROSSHAIRS

Suppliers exporting auto parts to the U.S. are also at risk of being affected by potential tax increases. Swedish airbag manufacturer Autoliv, along with Chinese Yanfeng and Italian Pirelli, continues its production in Mexico for the U.S. market.

UNCERTAINTY IN THE ELECTRONICS SECTOR

Electronics giants LG and Samsung are producing televisions and home electronics for the U.S. at their manufacturing facilities in Mexico. Additionally, companies like Lenovo and Foxconn are exporting artificial intelligence servers and data center products from Mexico to the U.S.

FOOD AND CONSUMER PRODUCTS COMPANIES

Italian beverage producer Campari is making significant exports to the U.S. market with the tequila produced at its facilities in Mexico and whiskey production in Canada. In the fast-moving consumer goods sector, giants like P&G and Unilever are drawing attention with their investments in supply chains in Mexico.