Factbox: Global companies that might be affected by Trump's promised tariffs

Brembo NV

26/11/2024 14:47

(Adds Autoliv, Brembo, Campari, Eurogroup Laminations,
Michelin, Pirelli, Stellantis)
       Nov 26 (Reuters) - President-elect Donald Trump on
Monday pledged tariffs on the United States' three largest
trading partners - Canada, Mexico and China - detailing how he
will implement campaign promises that could trigger trade wars.
    Here are companies which may be affected (by sector, in
alphabetical order):
    
    AUTOMAKERS
    AUDI
    Volkswagen's  VOWG_p.DE  Audi plant in San Jose Chiapa,
Mexico, makes the Q5, employing just over 5,000 people. It
produced nearly 176,000 cars in 2023, its website showed. In the
first half of 2024, nearly 40,000 were exported to the U.S.,
according to the Mexican Automotive Manufacturers Association. 
    BMW
    BMW's  BMWG.DE  plant in San Luis Potosi, Mexico, produces
the 3 Series, 2 Series Coupe and M2, with nearly all the output
going to the U.S. and other markets worldwide, according to the
carmaker. From 2027, it will produce the all-electric 'Neue
Klasse' model line.
    BYD
    Chinese EV maker BYD  002594.SZ  has been scouting for
locations to build a plant in Mexico but has said repeatedly
that the factory will serve the domestic market and not produce
cars to be sold in the U.S.
    HONDA MOTOR 
    Honda Motor  7267.T  sends 80% of its Mexican output to the
U.S. market and its chief operating officer Shinji Aoyama warned
on Nov. 6 that it would have to think about shifting production
if the U.S. were to impose permanent tariffs on vehicles
imported from the country.
    JAC MOTORS
    JAC Motors  600418.SS  has since 2017 had a joint venture in
Mexico with Giant Motors to assemble JAC brand vehicles.
SAIC-owned  600104.SS  MG in August announced plans to build a
plant in the country. 
    KIA CORP
    South Korea's Kia Corp  000270.KS  has a factory in Mexico
that makes its own vehicles and a small number of Santa Fe SUVs
for its affiliate Hyundai Motor  005380.KS  for U.S. exports.
    MAZDA
    Mazda  7261.T  exported around 120,000 vehicles from Mexico
to the United States in 2023. Mazda President Masahiro Moro said
on Nov. 7 that the tariff issue is "not a problem that can be
solved by individual companies" and it would carefully examine
the details before deciding its response.
    NISSAN MOTOR 
    Nissan Motor  7201.T  has two plants in Mexico where it
makes the Sentra, Versa and Kicks models for the U.S. market. It
produced nearly 505,000 vehicles in Mexico in the first nine
months of 2024. The company does not disclose how many of those
were exported to the U.S. market. 
    STELLANTIS
    Stellantis  STLAM.MI  operates two assembly plants in
Mexico: Saltillo, which makes Ram pick-ups and vans, and Toluca,
for the Jeep Compass mid-sized SUV. The Franco-Italian group
also owns two assembly plants in Ontario, Canada: Windsor, where
it makes Chrysler models, and Brampton, currently under
retooling and scheduled to resume production in 2025 with a new
Jeep model.
    TOYOTA MOTOR 
    Toyota Motor  7203.T  builds its Tacoma pick-up truck at two
plants in Mexico. It sold more than 230,000 of them in the U.S.
in 2023, representing about 10% of its total sales in that
market. Toyota used to produce the Tacoma in the U.S. but now
ships all of them from Mexico, which accounts for most of the
production at the plants. 
    VOLKSWAGEN
    Volkswagen's  VOWG_p.DE  factory in Puebla is the largest
auto plant in Mexico and one of the largest in the VW Group,
according to the carmaker's website. Nearly 350,000 cars were
made there in 2023, including the Jetta, Tiguan and Taos, all
for export to the U.S.
    
    AUTO SUPPLIERS
    AUTOLIV
    Sweden's Autoliv  ALIVsdb.ST , the world largest maker of
airbags and seat belts, said it employs around 15,000 staff in
Mexico, declining to comment on exports into the U.S. from
there.
    MICHELIN 
    Tyre maker Michelin  MICP.PA  has two plants in Mexico --
Queretaro and Leon -- and three in Canada: Pictou, Bridgewater
and Waterville.
    YANFENG
    Chinese seat maker Yanfeng Automotive Interiors have been
producing in Mexico for years to supply automakers including
General Motors  GM.N  and Toyota, which had relocated their
capacity to Mexico to lower costs. 
    OTHERS
    Other part makers with plants in Mexico serving automotive
production for the U.S. market include Italian tyremaker Pirelli
 PIRC.MI , Italian premium brake maker Brembo  BRBI.MI  and
Italy's Eurogroup Laminations  EGLA.MI .
    Eurogroup Laminations, which has Tesla  TSLA.O  among its
clients, specialises in stators and rotors, two key components
of electric motors and generators.
    U.S. automaker Tesla encouraged its Chinese suppliers to set
up plants in Mexico in 2023 to mainly supply its planned factory
in Mexico. 
    Tesla originally planned to start production in Mexico in
early 2025 but has largely shifted to an expansion plan for its
Texas plant. 
    ELECTRONICS
    FOXCONN
    The world's biggest electronics contract manufacturer
Foxconn  2317.TW  is building a giant artificial intelligence
server factory in collaboration with Nvidia  NVDA.O  in Mexico.
It plans to start production early in 2025 making a
liquid-cooled server containing Nvidia's new and powerful
Blackwell family of AI chips.    
    LENOVO
    Chinese computer maker Lenovo  0992.HK  produces servers and
other data centre products at a massive site in Monterrey,
Mexico, which it expanded in 2021. It said at the time that all
of its data centre products for the North American market are
manufactured in Monterrey.    
    LG ELECTRONICS
    South Korea's LG Electronics  066570.KS  makes TVs, home
appliances and EV parts at its Mexican sites. It said on Nov. 26
that it is reviewing possibilities including changes in trade
policies.
    SAMSUNG ELECTRONICS
    South Korea's Samsung Electronics  005930.KS  makes TVs and
home appliances in Mexico and exports them to the U.S.
    
    FOOD & DRINK
    CAMPARI
    Italian spirits group Campari  CPRI.MI  has three production
sites in Mexico, the main one producing tequila under their
brand Espolon, and one in Canada, producing a brand of Canadian
whisky (Forty Creek), according to their latest sustainability
report.
    They have no production sites in China. According to Citi,
Campari imports 27% of its U.S. sales from Mexico and Canada.
    
    RETAIL
    Swedish fast-fashion retailer H&M  HMb.ST  said it is
"continuously looking into risks linked to tariffs". China is
one of the biggest manufacturing markets for Swedish
fast-fashion retailer H&M, which sells in the United States. "We
are focusing on securing our processes to minimise any negative
impact on our supply chain so that we can continue serving our
store and online customers in the US going forward," the company
said in a statement.

    PACKAGED GOODS COMPANIES
    Procter & Gamble  PG.N  and Unilever  ULVR.L  are among big
packaged goods companies exposed to tariffs on imports from
Mexico, data shows.
    About 10% of P&G's shipments in the three months to
end-September were from Mexico, according to import data
provider ImportYeti. Around 2% of Unilever's sea imports into
the United States come from Mexico, the data shows.
    Both companies and other big consumer groups such as Pepsico
 PEP.O  and Lay's chips, have collectively invested hundreds of
millions of dollars in their Mexican supply chains.

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U.S. firms lead car exports from Mexico to North America    https://reut.rs/3OrmxnX
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 (Reporting by Daniel Leussink and Maki Shiraki in Tokyo,
Heekyong Yang in Seoul, Zhang Yan and Brenda Goh in Shanghai,
Wen-Yee Lee in Taipei, Christoph Steitz and Helen Reid in
London; Victoria Waldersee in Berlin, Giulio Piovaccari and
Elisa Anzolin in Milan, Gilles Guillaume in Paris, Marie Mannes
in Stockholm; Writing by Miyoung Kim and Josephine Mason;
Editing by Jacqueline Wong, Kirsten Donovan and Jonathan Oatis)
 ((mailto:miyoung.kim@thomsonreuters.com; 65 6870 3026; Reuters
Messaging: rm://miyoung.kim.thomsonreuters.com@reuters.net/))