Donald Trump's push for high tariff on cars imported from Mexico may hurt: Honda

Tariffs on cars imported into the US from Mexico may impact the delivery of thousands of vehicles, a Honda Motor Co. executive said Wednesday, as ballots were still rolling in.

Republican nominee Donald Trump, who now looks to be on the cusp of recapturing the White House, has in the past threatened to impose harsh levies on passenger cars crossing the Mexican border and into the US.

That, along with his pledge to peel back electric vehicle subsidies that were made available under the Inflation Reduction Act, could have untold impacts on global carmakers.

Japanese automaker Honda imports roughly 160,000 cars from Mexico to the US each year, Executive Vice President Shinji Aoyama said Wednesday during an earnings briefing.

“If they were to become subject to tariffs, that would have a big impact," Aoyama said. “Not just Honda but General Motors, Ford and other Japanese carmakers, too."

Executives at Daikin Industries Ltd., one of the world’s largest makers of air conditioning units, expressed similar sentiments around import tariffs should Trump return to power.

Lobbying activities and shifting production inside the US might be considered if tariffs are high, Honda’s Aoyama said. “In the medium to long term, we can’t afford not to think about it."

Toyota Motor Corp., which also reported quarterly earnings Wednesday, declined to comment directly on the potential impacts on the global automobile industry of a second Trump presidency.

“We will strive to be the best carmaker we can be, regardless of which administration or country we’re dealing with," Hiroyuki Ueda, Toyota’s head of external affairs, said.

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