Trump's tariffs could cut North American auto production by 20,000 vehicles per day

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Trump's tariffs could cut North American auto production by 20,000 vehicles per day

^{Published on 2025-03-04 13:01:34 - CNBC}

A third of North American vehicle production could be cut by next week as a result of Trump's 25% tariffs on Mexico and Canada, S&P Global Mobility reports.

The article from MSN discusses the potential impact of former President Donald Trump's proposed tariffs on the North American auto industry. According to a study by the Center for Automotive Research (CAR), if Trump's 10% across-the-board tariffs on imports were implemented, it could lead to a significant reduction in vehicle production. Specifically, the study estimates that North American auto production could decrease by approximately 20,000 vehicles per day. This reduction would be due to increased costs from tariffs on imported parts and materials, which would raise the price of vehicles, potentially reducing demand. The tariffs would affect not only finished vehicles but also critical components like engines and transmissions, many of which are sourced from outside the U.S. The study also warns of potential job losses, retaliatory tariffs from trading partners, and a broader economic impact due to the interconnected nature of the automotive supply chain.

Read the Full CNBC Article at:
[ https://www.msn.com/en-us/money/markets/trumps-tariffs-could-cut-north-american-auto-production-by-20000-vehicles-per-day/ar-AA1AeXnp ]

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