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The move intends to move more production south of the border but could increase vehicle prices or severely slow the industry altogether
13 hours ago
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Donald Trump threatened Canada with a new 100% tariff on all cars from the nation.
The President believes this threat could help the USA secure a better trade deal.
On the flip side, it could raise vehicle costs and slow down vehicle production.
In a new interview with Bret Baier of Fox News, President Donald Trump threatened Canada with up to 100 percent tariff on cars. The statement came after he addressed the debt that the USA currently faces. On Monday, he signed two proclamations that impose 25 percent tariffs on steel and aluminum without exception. These moves aim to benefit the USA but could harm it too.
“If you look at Canada, Canada has a very big car industry. They stole it from us. They stole it because our people were asleep at the wheel. If we don’t make a deal with Canada, we’re going to put a big tariff on cars. Could be a 50 or 100 percent because we don’t want their cars. We want to make the cars in Detroit,” Trump said in his latest interview.
While Trump desires a better trade deal and evidently more American jobs, industry experts aren’t so sure this is a wise move. “Last week, when we thought we were getting a 25 per cent tariff on everything, including cars and parts, I said that as soon as those tariffs come in, within a week, the industry would be shut down,” said Flavio Volpe, president of the Automotive Parts Manufacturers Association. “It’s going to cause the cessation of production by American car companies,” he toldGlobal News.
It’s worth noting that several American cars are made in Canada including the Chevrolet Silverado, Dodge Charger Daytona, Chrysler Pacifica, and others now out of production including the Chrysler 300 and Dodge Challenger. Moves like this one led Ford’s CEO to slam what he sees as unfair tariff policies by the administration.
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Notably, others called Trump out for mentioning the tariff threat in response to a question about making things like groceries cheaper for Americans. Trump did not go on to directly address the question.
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