Economics

Summary

Donald Trump’s 25% tariffs on vehicles from Mexico and Canada could cause major price increases and financial strain on U.S. automakers.

The industry, already struggling with uncertainty, faces potential costs of $40 billion annually. Automakers like GM, Ford, and Stellantis rely heavily on North American supply chains, making tariff-related adjustments difficult.

Suppliers are preparing for cost hikes, which may be passed to consumers.

While Trump aims to curb illegal migration and trade deficits, experts warn of severe economic disruptions if tariffs are implemented.