President Trump's proposed 25% tariffs on auto imports from Canada and Mexico threaten to disrupt over $300 billion in automotive trade and significantly increase car prices. Experts warn that these tariffs pose a serious risk to North American auto production and could lead to an economic downturn. Kelley Blue Book predicts the average new car price could rise by $3,000, while full-size pickups might increase by $10,000. The interconnected nature of supply chains since the 1960s raises concerns about widespread economic repercussions if tariffs are implemented.
The tariffs pose an existential threat to North American auto production, likely pushing up the cost of cars and disrupting decades-long supply chains.
Kelley Blue Book estimates Trump's tariffs could raise the average new car price by $3,000, with full-size pickups potentially increasing by $10,000.
Sustained tariffs would push Canada and Mexico into recession and the U.S. could face stagnant growth, marking a severe economic impact.
Since 1965, North America has been an integrated auto manufacturing powerhouse, benefiting from relatively cheap Canadian steel and aluminum, low-cost Mexican labor, and U.S. technology.
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