How Trump’s tariffs threaten an iconic US pick-up truck

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Shevrolet Silveredo has become one of America’s most popular pick-up trucks since its inauguration almost three decades ago. However iconic cars can now be one of the largest victims of Donald Trump Trade warThe

Hi-Margin General Motors Model, whose price is about 40,000 dollars- $ 70,000, is the most complex, international and inter-associated automotive automotive supply chain, making it. Vulnerable The US President’s threat to impose 25 percent tariffs in Canada and Mexico.

Among the 6773,000 SilverDos produced last year, the Mexican city of Silao GM was built 31 percent and 20 percent on its plant in Oshawa, Canada.

Even about half of the three US plants in Michigan and India, the power steering and door trim panels were created in Mexico; Back light in Canada; Airbag module in Germany; S&P display the center stack in Japan according to global mobility data.

Chief Financial Officer Paul Jacobson has been preparing for the GM tariff since Trump’s election, at an investor conference last month.

The car maker has shifted some production and reduced the list by about one -third of the outside trees in the United States “because the latest thing you want is to finish inventory.. Suddenly 25 percent of the suddenly became more expensive over time”.

When the tariff is permanent, he said the companies need to consider whether the plants should be transferred. But with current uncertainty, GM cannot spend billions of “backwards backwards”.

Data compiled by export talent shows that the main components of Silverdos are largely dependent on the parts imported from Mexico. The export of parts of the country for cars was about $ 30 billion last year, the braking systems were alone for $ 4.3bn accounting.

Trump Threat In early February Mexico and Canada tariffs, then they announced a 30-day recovery before they came into effect-but he promised to proceed from Thursday March 4. If tariffs extend to products imported from the EU and other parts of the world, the rise will be worse.

The biggest fear in the industry is that Trump will usually impose blanket tariffs without the measures that have the measures to alleviate their influence, such as the tariff error programs through which the lavras are finally re -exported but finally returned.

“This is not a trade verb. This Border protection The topic of discussion, “Dan Hyarshash, the US leader of the Consultancy Partners’ automotive and industrial practice, says Trump’s argument that he is imposing tariffs in response to illegal immigrants and drugs across the Mexican and Canadian borders.” This is a big hammer “this is a challenge.”

Mike Wall, executive director of the automotive analysis of S&P Global Mobility, says companies are “a deep dive” in the supply chain to detect the points. “If they can and wherever they can, they will try to move some of that source,” he added.

However, from Mexico to the United States to change production, it will take time and expensive, when the cost of higher labor increases.

Ford chief executive Jim Farley warns that if there is a prolonged tariff on import from Mexico and Canada, “billions of dollars in the industry’s profit” may be wiped out.

Chrisler owner Stelantis Chairman John Alcan called on Trump to keep Trump on Mexico and Canada’s duty -free items this week. Instead, he describes the United States as “lufole which is currently allowed in the country about 4MN vehicles in the country”, which is the same as in the case of cars made in Japan and South Korea “

Mexico National Autonomous University Professor of Economics and Labor Research and Trade Union Consulting, researcher Willballdo Gamez Juppa says the tariffs will increase the price of vehicles like Silvarado, damage demand – even increasing the immigration problem.

Higher wages at the GM’s Silao Plant earns $ 5.50 per hour, Gomez Jupa said. However, the company quoted the tariff last month when they rejected a proposal from the workers’ union in the plant to raise wages.

The tariffs are “the three countries that will change the course of integration from the 5th”, he said.

He also added that GM, Ford and Stelantis operate their Mexican factories in the region where their Mexican factories have already been significant.

“These companies are closed, and they are moving forward, it will affect the entire regional labor market, and therefore we forecast that immigration from this region will increase,” he said.