U.S. President Donald Trump has said he plans to implement tariffs on imported motor vehicles and auto parts starting April 2, dealing a potential blow to Canada’s manufacturing sector.
Trump’s comment on auto tariffs contained few other details, and did not say whether the new duties will apply to all automotive imports.
However, economists and industry analysts continue to warn that tariffs on U.S. imports effectively raise prices for American consumers.
The American Automotive Policy Council, which represents General Motors (GM), Ford Motor Co. (F), and Stellantis (STLA), has said the proposed auto tariffs could add an additional $6,000 U.S. to the cost of a new vehicle sold in America.
Analysts have warned that any tariffs will damage the U.S. automotive manufacturing industry that is closely intertwined with Canada and Mexico.
About half of all the vehicles sold in the U.S. are manufactured within the country. The other 50% are imported from Mexico and Canada, as well as Japan and Germany.
The three major U.S.-based automotive manufacturers, GM, Ford and Stellantis have raised concerns about potential tariffs.
Ford CEO Jim Farley has said that Trump’s proposed tariffs on Mexico and Canada will “blow a hole” in the North American auto industry.
The stocks of both General Motors and Ford are down so far this year as investors try and assess the impacts of any tariffs levied on vehicles and auto parts.
