Trump is threatening new Canadian auto tariffs. That will hurt US automakers and workers
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“Sweaters, honey and hockey sticks are not a trade war. What the president just threatened this morning is a trade war,” said Patrick Anderson, CEO of Anderson Economic Group, a Michigan-based consulting firm. “It would be a body blow to the auto industry. We would see plants closing on both sides of the border.”
Canada does have a large trade surplus with the United States. But when it comes to the auto industry, it’s the opposite — the US has a nearly $1 billion a month trade surplus with Canada.
America imported $24.5 billion worth of Canadian vehicles and auto parts in the first six months of this year, according to Commerce Department trade data, compared to the $30.4 billion Canada imported.
Since the North American Free Trade Agreement was first introduced in the 90s, and then the US-Mexico-Canada Agreement during Trump’s first term, the auto industry has been able to operate as if North America is a single market. Companies move parts and vehicles freely across borders, often multiple times before the car is assembled and sent to dealer showrooms.
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