President-elect Donald Trump's plan to impose 25% tariffs on Canadian and Mexican imports in his first day in office does not exempt crude oil from the trade penalties, two sources familiar with the plan told Reuters on Tuesday. (Reporting By Jarrett Renshaw; Editing by Chris Reese)
Why is that? We would be able to import the US parts needed to build cars domestically as we do today. The tariffs would affect domestic production going back to the States. Even if Canadian autos go belly up because they can’t export to the States, we’d still be able to import US-made vehicles. What am I missing?
Pretty much every car built anywhere in North America has parts from at least 2 of the 3 countries, not to mention China. Sometimes parts end up going across the border multiple times before they end up as a fully assembled car.