General Motors (GM) could face significant risks from President-elect Trump’s proposed policies, including a 25% tariff on hundreds of thousands of vehicles built in Mexico. The tax could heavily impact GM’s imports of gasoline-powered trucks and its affordable Equinox EV, both manufactured in Mexico.
According to recent reporting from Reuters, the automaker also stands to lose $7,500 EV subsidies, threatening its aggressive investments in electrification. While relaxed emissions standards may extend the profitability of its gasoline lineup, GM’s heavy reliance on EV production to remain competitive globally faces serious setbacks.
Mexico is critical to GM’s operations, with over 750,000 vehicles imported from Canada and Mexico annually. Shifting production or absorbing tariffs could strain profits or drive up consumer prices.
GM’s balancing act between trucks, EVs, and regulatory demands leaves it exposed as it navigates these policy shifts. The bottom line is clear: the stakes are high for America’s largest automaker.
