Mazda Motor has said it is freezing its investment plans in Mexico until it receives clarification about the proposed import tariffs that newly-elected US President Donald Trump plans to introduce when he takes office in January.
The Japanese automaker said it may revise or reconsider its planned investments in the country, depending on the trade policies of the new US government.
Mazda is on target to produce 210,000 vehicles in Mexico this year, up from 203,000 in 2023. It expects to sell a total of 100,000 vehicles in the country, including imports, with the balance of production exported mostly to North America. Around 30% of Mazda’s US sales come from Mexico.
Donald Trump has stated that he plans to impose a 25% tariff on imports from Mexico and Canada next year, as part of a plan to encourage companies to “re-shore” their investments back in the US. A large number of automakers with operations in Mexico could potentially be affected by the new trade policies, including US automakers Stellantis, Ford and GM, as well as Japanese and European manufacturers.
Trump has also made statements indicating that he will link his trade policy to other areas of concern such as illegal immigration and shipments of illicit drugs.
Mazda Mexico director, Miguel Barbeyto, said in a statement: “We want to continue investing in the country. But this may not be a good business for Mazda Motor Corporation in the future” – if new import duties are introduced in the US.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe new Trump-led government also said it plans to apply an additional 10% tariff on general imports from China. The US already applies a 100% duty on Chinese-made BEVs and 25% on other products including steel.
Tom Donnelly, the head of Mazda’s US operations, said separately that if Trump’s new tariffs come into effect the company would replace imports by using the spare capacity it has available at its joint venture plant with Toyota in Alabama, adding “we’ve been scenario-planning various scenarios for some time.”
