General Motors is moving some of its production from Mexico to the U.S. in the months after President Donald Trump’s tariff on vehicles manufactured abroad.
The $4 billion investment over the next two years will boost domestic manufacturing, according to the company. That investment includes adding production lines currently based in Mexico to plants in the U.S.
Trump’s 25% tariff on foreign-made cars threatens to hurt U.S. car manufacturers’ bottom lines — and consumers’ ability to afford new vehicles, says Jeff Rightmer, a professor at Wayne State University who studies auto supply chains.
“You could just start seeing that the price of vehicles was going to go up,” Rightmer said. “Doing what you can to reduce that impact was a big part of this decision.”
Mexico’s economy secretary said on social media he spoke to GM, which told him the change wouldn’t lead to closures of plants in Mexico.
U.S. auto manufacturers are important employers in many parts of Mexico, including Sonora’s capital Hermosillo, where Ford assembles Bronco Sports and Mavericks.
