U.S. President-elect Donald Trump’s pledge to impose additional tariffs on imports, particularly from China and Mexico, has sparked concern among Japanese automakers with significant operations in Mexico.
The United States’ goods and services trade deficit reached about $785 billion in 2023, according to the U.S. Commerce Department. By country, China accounted for the largest share, at about $250 billion, followed by Mexico, at about $160 billion. Trump has criticized bilateral trade deficits and campaigned on imposing steep tariffs — 60% on imports from China and over 100% on vehicles from Mexico.
A key focus for Trump is the United States-Mexico-Canada Agreement, USMCA, a trade deal involving the three nations. The agreement includes “rules of origin” that exempt completed vehicles from tariffs if 75% or more of their main components are sourced within the three countries. Trump has expressed frustration over Chinese-made vehicles making their way into the U.S. market tariff-free via Mexico.
