As Trump’s tariff threat lingers, autos warn of ‘inoperable’ effects

Automotive leaders are warning that proposed 50% tariffs on Canadian vehicles and auto parts could disrupt the highly integrated North American automotive supply chain, creating challenges for manufacturers, suppliers, dealers, and consumers.

“Parts that flow between Canada and the U.S. wind up on both sides of the border,” said Glenn Stevens Jr., Chief Automotive and Innovation Officer of the Detroit Regional Chamber and Executive Director of MichAuto. “But 50% tariffs that potentially supersede the USMCA (United States-Mexico-Canada) free-trade framework, they just make the supply chain financially inoperable. I mean, it would be a major shock to the system.”

Stevens added that the ongoing uncertainty has taken a toll on the industry: “(More than) 600 days of managing, mitigating, figuring out tariffs. What’s going to happen? What does it mean to my business? … It’s fatiguing.”