Market Overview

Trump's Border Tax: Which Auto Makers Are Most At Risk?

Trump's Border Tax: Which Auto Makers Are Most At Risk?

President-elect Donald Trump's economic policy is to support manufacturers that make their products in America and punish manufacturers who manufacturer their products outside of the United States, especially in Mexico.

This policy particularly applies to automakers. On several occasions, Trump has tweeted warning shots to auto manufacturers including General Motors Company (NYSE: GM), Ford Motor Company (NYSE: F) and even non-American automakers like Toyota Motor Corp (ADR) (NYSE: TM).

Trump also publicly thanked automakers who announced plans to invest billions of dollars in production facilities in the United States, such as Fiat Chrysler Automobiles NV (NYSE: FCAU).

The question at the top of investors' minds is how to invest in the auto sector should Trump implement a border tax.

Border Taxes And Mexican Cars

Statista reported on Wednesday which car makers would be the most at risk from a border tax from cars made in Mexico.

Here is the total number of cars produced in Mexico by automaker throughout 2016:

  • Nissan Motor Co Ltd (ADR) (OTC: NSANY): 791,000, up 2.7 percent from 2015.
  • General Motors: 650,000, down 0.2 percent from 2015.
  • Fiat Chrysler: 425,000, down 8.6 percent from 2015.
  • Volkswagen AG (ADR) (OTC: VLKPY) (OTC: VLKAY): 389,000, down 10.0 percent from 2015.
  • Ford: 363,000, down 9.7 percent from 2015.
  • Honda Motor Co Ltd (ADR) (NYSE: HMC): 242,000, up 29.6 percent from 2015.
  • Mazda Motor Corp (OTC: MZDAY) (OTC: MZDAF): 139,000, down 19.5 percent from 2015.
  • Toyota: 13,000, up 35.9 percent from 2015.

Image Credit: By Michael Vadon (Own work) [CC BY-SA 4.0], via Wikimedia Commons

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