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Aptiv may take $17M monthly hit from tariffs on Mexican imports, CFO warns

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Aptiv may take $17M monthly hit from tariffs on Mexican imports, CFO warns

Aptiv PLC would need to shell out $17 million monthly if U.S. President Donald Trump imposes a 5% tariff on Mexican imports, Joe Massaro, the automotive parts producer's senior vice president and CFO, said during the company's investor conference held June 4.

However, if a tariff scheme is implemented wherein it only accounts for the value add when goods pass the border from Mexico to North America, the company will pay "a much lower number," the executive said. "That would be at 5%, about $5 million a month."

"We import a little bit over $3 billion a year over the Mexico border," Massaro also said in response to an analysts' question.

Massaro added that Aptiv will begin looking at the value of its supply chain in Mexico, similar to what it did in China. He also warned that it would "take longer" for the industry to move pieces of its supply chain out of the country since it is "much more involved."

The executive's statements come after Trump threatened to enforce fines on imports from Mexico in an attempt to stem illegal immigration.