Trump's tariffs "nuclear bomb" is coming! Which global giants will be the first to bear the brunt?

The US President Trump recently stated that he may impose a 25% tariff on Canada and Mexico starting from February 1st. This news has sparked wide market attention, leading to a drop in the stock prices of several Asian car manufacturers and battery companies in Tuesday's trading. Below is a list of companies that may be affected, arranged by industry and in alphabetical order: Car Manufacturers Audi Audi, a subsidiary of Volkswagen, produces the Q5 model at its factory in San Jose Chiapa, Mexico, employing over 5,000 employees. The factory produced nearly 176,000 cars in 2023. According to the Mexican Automotive Industry Association's data, Mexico exported nearly 40,000 cars to the US in the first half of 2024. BMW BMW produces the 3 series, 2 series coupes, and M2 models at its factory in San Luis Potosi, Mexico, with almost all products being sold to the US and other global markets. Starting from 2027, the factory will produce the fully electric "New Clases" series. BYD Company Limited Chinese electric car manufacturer BYD Company Limited has been looking for a location to build a factory in Mexico, but the company has stated that the factory will mainly serve the domestic Mexican market, rather than produce cars for export to the US. Honda Motor Co., Ltd. Honda Motor Co., Ltd. ships 80% of its products produced in Mexico to the US market. The company's Chief Operating Officer, Shinji Aoyama, warned in November last year that if the US imposes permanent tariffs on cars imported from Mexico, Honda will have to consider relocating production. JAC Motors Since 2017, JAC Motors has established a joint venture with Giant Motors in Mexico to assemble JAC-branded cars. SAIC's MG announced plans to build a factory in China in August this year. Kia Corp. Korean automaker Kia has a factory in Mexico, producing Kia-branded cars, as well as a small number of Hyundai Motor's Tucson SUVs for export to the US. Mazda Mazda produced approximately 209,000 cars in Mexico in 2024, with around 60% exported to the US. The company's President, Masahiro Moro, stated in November last year that the tariff issue "is not something a single company can solve," and Mazda will carefully study the details before making a decision. Nissan Motor Nissan has two factories in Mexico, producing the Sentra, Versa, and Kicks models for the US market. In the first 9 months of 2024, Nissan produced nearly 505,000 cars in Mexico, but did not disclose how many were exported to the US. STELLANTIS STELLANTIS operates two assembly plants in Mexico: Saltillo produces Ram pickups and vans, while Toluca manufactures the Jeep Compass SUV. In addition, the group has two assembly plants in Ontario, Canada: Windsor produces Chrysler models, while Brampton is being restructured and plans to resume production of a new Jeep model in 2025. Toyota Motor Corp. Toyota Motor Corp. produces Tundra pickups at two factories in Mexico. In 2023, the company sold over 230,000 Tacomas in the US, accounting for 10% of its total sales in the US market. Currently, all Tacomas are imported from Mexico, with most of the production from the Mexican factory being exported. Volkswagen Volkswagen's factory in Puebla is one of the largest car factories in Mexico and one of the largest in the Volkswagen group. In 2023, the factory produced nearly 350,000 cars, including the Jetta, Tiguan, and Taos models, all exported to the US. Car Suppliers Autoliv Inc. Autoliv Inc., the world's largest producer of airbags and seatbelts, employs approximately 15,000 employees in Mexico but did not comment on the export of products from Mexico to the US. Michelin Tire manufacturer Michelin has two factories in Mexico (Queretaro and Leon) and three factories in Canada (Pictou, Bridgewater, and Waterloo). Yanfeng Chinese seat manufacturer Yanfeng has been producing in Mexico for many years, supplying to automakers such as General Motors Company and Toyota Motor Corp., among others. Other Companies Other companies with factories in Mexico serving the US marketCompanies that produce automobile parts include Italian tire manufacturer Pirelli, Italian high-end brake manufacturer Brembo, and Italian Eurogroup Laminations. Eurogroup Laminations is one of the customers of Tesla, Inc. (TSLA.US), specializing in the production of key components for electric motors and generators -- stators and rotors.Tesla, Inc. has encouraged its Chinese suppliers to establish factories in Mexico by 2023, primarily to supply its planned factory in Mexico. Tesla, Inc. initially planned to start production in Mexico in early 2025, but has now shifted its focus towards expanding its factory in Texas. Electronics Foxconn The world's largest electronics contract manufacturer, Foxconn, is partnering with NVIDIA Corporation to build a giant artificial intelligence server factory in Mexico. The factory is set to start producing a liquid-cooled server in early 2025, featuring NVIDIA Corporation's latest Blackwell series artificial intelligence chips. Lenovo Chinese computer manufacturer Lenovo produces servers and other data center products at a large factory in Monterrey, Mexico. The factory was expanded in 2021, and all data center products for the North American market are produced there. LG Electronics South Korean LG Electronics manufactures TVs, appliances, and electric car components at its factory in Mexico. The company stated last November that it is evaluating various possibilities, including changing trade policies. Samsung Electronics South Korean Samsung Electronics produces TVs and household appliances in Mexico and exports them to the United States. Food and Beverages Campari The Italian liquor group, Campari, has three production bases in Mexico, primarily producing tequila under the Espolon brand, and also produces the Canadian whisky brand Forty Creek in Canada. Data shows that 27% of Campari's US sales come from Mexico and Canada. Packaged Goods Procter & Gamble Company and Unilever PLC Sponsored ADR Data indicates that large packaged goods companies like Procter & Gamble Company and Unilever PLC Sponsored ADR may be impacted by Mexican import tariffs. Import data provider ImportYeti's data shows that in the three months leading up to the end of September, around 10% of Procter & Gamble Company's shipments and 2% of Unilever PLC Sponsored ADR's ocean imports in the US came from Mexico. In addition, major consumer groups like PepsiCo, Inc. and Lay's chips have also invested hundreds of millions in their supply chains in Mexico. In conclusion, Trump's plan to impose tariffs on Mexico and Canada could have a significant impact on many multinational companies and supply chains, involving multiple industries such as automotive, electronics, food, and packaged goods.