As new auto tariffs loom, EVs built in Mexico and Canada could soon get more expensive. With automakers relying on these regions for production, price hikes may hit consumers hard. Will your next EV cost thousands more? Here’s what you need to know.
Tariffs Are Coming—And They Won’t Be Cheap
Auto tariffs on Mexico, Canada, China, and the EU are expected to roll out soon. President Donald Trump confirmed that new tariffs will be announced by April 2.
In 2024, the U.S. imported $471 billion worth of automotive products, including $214 billion in passenger cars. If tariffs land as expected, some EVs could see price jumps of $8,000 to $10,000, according to Wells Fargo estimates. Even U.S.-assembled vehicles could get $2,100 more expensive due to increased parts costs.
Why Mexico Is a Key EV Player
Mexico has become a major hub for EV production, but ironically, EV adoption there remains low. In 2024, the country sold just 1.1 million new vehicles, with EVs making up a tiny fraction. The main barriers? High prices and a lack of charging infrastructure.
However, Mexico is working to change that. The government is developing its own EV supply chain and is even backing a federally subsidized EV expected to cost as little as $4,400.
Which EVs Are Made in Mexico & Canada?
Despite affordability challenges, many EVs headed to U.S. showrooms are built in Mexico and Canada. Here’s a breakdown:
EVs from Mexico
Ford Mustang Mach-E
- Chevy Blazer EV
- Chevy Equinox EV
- Honda Prologue
- Audi Q5 S line 55 e (PHEV)
Hybrids from Canada
- Honda Civic Hybrid (5-door)
- Lexus RX350h
- Lexus RX500h
What Happens Next?
With potential tariffs and EV tax credit cuts, buying an EV could soon cost a lot more. Automakers like GM and Ford rely on Mexico and Canada for production, meaning some models could be pulled from the market if costs skyrocket.
