Autos: "It's impossible to be profitable tomorrow" [View all]

[speak easy]

Canada, Mexico Want America to Feel the Pain of Tariffs Too

Supply chains in the highly integrated auto sector face significant disruption because tariffs have an expansive impact. Mexico supplied about 42% of U.S. imports of auto parts last year and Canada almost 13%. With auto parts going back and forth among the three countries several times, tariff costs risk surging well above 25%, industry experts say.

“Trump is taking aim at Canada and Mexico, but it’s a direct hit on Michigan, Ohio, Indiana, Tennessee, any state where they make autos,” said Flavio Volpe, president of Canada’s Auto Parts Manufacturers’ Association. “It’s impossible to be profitable tomorrow with tariffs on Canadian and Mexican parts. And the only thing more impossible is to replace them within 18 to 24 months.”

WSJ