Osamu Inoue, president of Sumitomo Electric, which makes parts for Volkswagen, Toyota and Stellantis, among others, said Trump’s threatened 25 per cent tariffs on Mexican goods would do more harm to US suppliers, which account for almost a third of car parts investment in Mexico.

President Donald Trump said a 25% tariff on Canada and Mexico could come on February 1 and that a universal tariff isn't off the table.

The president said he planned to put tariffs on America’s neighbors on Feb. 1, as he signed an executive order mandating a sweeping review of U.S. trade policy.