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Japan automakers with Mexico production brace for Trump tariffs NHK

US President-elect Donald Trump says he will impose a 25 percent tariff on all products from Canada and Mexico, and an additional 10 percent tariff on goods from China.

Trump said on social media on Monday that "thousands of people are pouring through Mexico and Canada, bringing Crime and Drugs at levels never seen before."

He said, "On January 20th, as one of my many first Executive Orders, I will sign all necessary documents to charge Mexico and Canada a 25% Tariff on All products coming into the United States."

He also said: "Both Mexico and Canada have the absolute right and power to easily solve this long simmering problem. We hereby demand that they use this power."

Trump added that the tariff will remain in effect until crime and drugs from the two countries stop coming into the US.

Trump also criticized China over the drug Fentanyl which has caused a major problem in US society. The drug is said to be produced using China-made materials and smuggled into the US.

The President-elect unveiled a plan to impose an additional 10 percent tariff on all of Chinese products over the drug problem.

He said that he has had many talks with China about the problem, but to no avail. He revealed, "Representatives of China told me that they would institute their maximum penalty, that of death, for any drug dealers caught doing this but, unfortunately they never followed through."

Trump indicated that the additional tariff will be charged until China addresses the problem.

He has announced plans to impose new tariffs for the first time after he won the presidential election earlier this month.

The incoming US President appears to be ready for negotiations with other trade partners using tariffs as a card.

If Trump goes ahead with the planned tariffs, Japanese automakers with production hubs in Mexico may have to adjust their export strategies.

The Japan External Trade Organization says Nissan Motor built more than 615,000 vehicles in Mexico last year, shipping about 40 percent of them to the United States.

JETRO says Toyota Motor assembled roughly a quarter of a million vehicles in Mexico in 2023, and exported 90 percent of them to its northern neighbor.

As for Mazda Motor, the trade organization says it shipped about half of the more than 200,000 cars it built in Mexico to the US, while Honda Motor delivered around 80 percent of over 167,000 Mexico-built units.

Earlier this month, Honda Executive Vice President Aoyama Shinji told an earnings conference that higher tariffs on auto exports from Mexico to the US would have a major impact, forcing Honda to take measures.

He said the company would monitor how things turn out and would act accordingly, since it would be impossible to relocate factories right away.
Summary
US President-elect Donald Trump intends to impose a 25% tariff on products from Canada and Mexico, along with an additional 10% tariff on goods from China. This decision stems from concerns over immigration, crime, and drugs coming from these countries, particularly Fentanyl from China. Trump has
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ID: 7e49ab94-e713-4c99-b4ea-b8d8bbda3761

Category ID: nhk

URL: https://www3.nhk.or.jp/nhkworld/en/news/20241126_B04/

Created: 2024/11/27 07:00

Updated: 2025/12/08 08:27

Last Read: 2024/11/27 08:35