President-elect Donald Trump earlier this week threatened to impose a 25% tariff on all imports from Canada and Mexico. The move is meant to force the countries to stop the flow of migrants and drugs across America’s borders. He also threatened to hike tariffs on all Chinese products by 10%.
The automotive industry has reacted with alarm to the plan, which could dramatically increase the prices of many cars and trucks.
Economist Patrick Anderson, who studies the car market, told The New York Times the move would be “a two-alarm fire for the auto industry.” He added, “There is probably not a single assembly plant in Michigan, Ohio, Illinois, and Texas that would not immediately be affected by a 25% tariff.”
