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Auto Tariffs Could Raise Imported Car Prices

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Detroit June 19, 2018; The AIADA reported that every workday, about 7,400 trucks mostly loaded with automotive parts rumble across the Ambassador Bridge connecting Detroit and Canada, at times snarling traffic along the busy corridor.

But if President Donald Trump delivers on threats to slap 25 percent tariffs on imported vehicles and components, there will be far fewer big rigs heading to factories that are now humming close to capacity on both sides of the border, reports The Associated Press.

Tariffs against China include some autos and parts but if those spread to Canada and Mexico, the impact will be far larger because auto manufacturing has been integrated between the three countries for nearly a quarter century.

If the wider auto tariffs are imposed, industry experts say they will disrupt a decades-old symbiotic parts supply chain, raise vehicle prices, cut new-vehicle sales, cost jobs in the U.S., Canada and Mexico, and even slow related sectors of the economy.

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