Auto manufacturers prepare for possible U.S. tariff on Mexico

MEXICO - Global automakers are already considering strategies to mitigate the impact of a possible 25% tariff that the United States may impose on imports from Mexico and Canada, according to a report by Fitch Ratings.

Fitch has warned that, should these trade taxes be implemented, the main automotive companies would face pressure on their credit ratings due to increased costs and the impact on their supply chains.

The rating agency noted that companies' exposure to these tariffs varies according to their level of production in North America and their ability to pass on costs to consumers.

According to Fitch, to mitigate the impact of the tariffs, companies have begun to evaluate strategies such as diversifying suppliers, adjusting sales prices and optimizing operating costs.

However, Fitch has indicated that the automakers do not plan to make drastic changes in their production until the US tariff policy is officially implemented after being postponed for a month last week.

Among the companies most at risk are General Motors, Honda, Nissan and Stellantis, due to their high dependence on manufacturing in Mexico and Canada.

The most recent official data in Mexico show that exports of cars assembled in the country fell by 13.74% year-on-year in January, despite a 1.68% increase in production, according to the National Institute of Geography and Statistics (Inegi).

This drop in the largest sector linked to Mexican industry occurs in the midst of Donald Trump's return to the White House on January 20, who has warned of tariffs on Mexican products, despite being its main trading partner.

Fitch indicated that, prior to the announcement of the possible tariffs, there was already a negative outlook for the automotive industry due to factors such as the slowdown in demand and the transition to electric vehicles in North America.