Car prices projected to jump under Trump trade agreement with Mexico

[Bernardo de La Paz]

1. They'll jump a bunch more if he puts automobile tariffs on Canada.

There are already tariffs and counter-responsive tariffs on steel and aluminum.

The three economies are very interwoven, such that a product might have bits and pieces from all three by time final assembly is finished.

Canadian steel is used for parts made in the US put into cars built in Canada and sold in the US.

Similarly,

US steel is used for parts made in Canada put into cars built in the US and sold in Canada.

Tariffs on any one part will disrupt and maybe even interrupt the chain. They can only increase prices and cost jobs everywhere.