The Trump administration’s plans to implement tariffs on automobiles and automotive parts imported into the United States will have a ‘significant impact’ on the global electric vehicle industry, Rho Motion has said.
The US imported around 40% of the EVs sold in the country last year, with the highest proportion being imported from Mexico, followed closely by Japan and Korea. Each country accounted for approximately 9% of the total US EV market in 2024.
Elsewhere, Germany and Sweden were the biggest EV exporters in Europe, accounting for around 7% of the total EV share.
Affected manufacturers
In terms of the vehicle manufacturers that are likely to be most affected by the tariffs, Hyundai, Toyota, and BMW stand out, Rho Motion said.
‘While they all have production bases within the US, the majority of their EV sales in the country are imports,’ it noted. ‘Assuming these OEMs pass the cost of the tariffs onto consumers, the tariffs are likely to have a negative impact on sales.’
Hyundai has already taken steps to lessen the blow, recently announcing a $21 billion investment in the US, with $9 billion earmarked for expanding production capabilities.
Canada and Mexico, which provide more than 10% of EVs to the US, are already subject to tariffs under the United States-Mexico-Canada Agreement (USMCA). Non-compliant parts in USMCA-compliant vehicles will still face a 25% tariff, however.
‘Well-placed to qualify’
“With GM and Ford making the majority of EVs in Mexico, they are well placed to qualify as USMCA compliant given their batteries are supplied from within the region and represent a high proportion of the vehicle’s value,” commented Will Roberts, automotive research lead at Rho Motion.
“Other key OEMs with high EV imports are currently progressing plans to build up US manufacturing capacity, Hyundai’s recent announcement seems particularly well timed. However, others such as BMW have made big plans for Mexican EV production which they may now reconsider. It could also slow the introduction of other new models from European manufacturing sites, hurting model availability and ultimately EV adoption in the US.” Read more here.
