If Trump slaps auto tariffs on Canada, here's what it'll cost the US
Americans could face hefty new-car price increases if NAFTA negotiations don't go smoothly for Canada.
As President Trump struck an agreement with Mexico on a revised NAFTA earlier this week, he gave Canada until Friday to make concessions that would allow it to join the pact. If the country doesn't, Mr. Trump suggested auto tariffs would be on the table, saying, "I think with Canada, frankly, the easiest thing we can do is to tariff their cars coming in."
Tariffs on autos from Canada—where about 10 percent of cars sold in the U.S. are made, along with auto parts—would disrupt the U.S. auto industry, analysts said. If tariffs are imposed, they foresee these effects on cars and auto parts:
Price hikes of 25 percent. For a vehicle assembled in Canada, the price would likely rise by one-quarter. For instance, the Dodge Charger, now starting at $28,995, would rise 25 percent to $36,244. That could put the Charger beyond the reach of some buyers. "The results of such higher prices would be fewer sales," said Charlie Cheesebrough, senior economist for Cox Automotive.Production disruptions. "Tariffs could disrupt auto production substantially," said Cheesebrough. "The supply chain is very connected all across NAFTA."
https://www.msn.com/en-us/money/markets/if-trump-slaps-auto-tariffs-on-canada-heres-what-itll-cost-the-us/ar-BBMDZO3
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