Trump threatens Canada with 100% tariffs on cars
US President Donald Trump is once again escalating trade relations with his neighbours. In an interview with Fox News, he said he was ready to impose a tariff on cars produced in Canada in the amount of up to 100%.
Here's What We Know
Trump accused Canada of "stealing" the auto industry from the US and threatened serious restrictions if a favourable trade deal could not be struck.
"If you look at Canada, Canada has a very big car industry. They stole it from us. They stole it because our people were asleep at the wheel. If we don’t make a deal with Canada, we’re going to put a big tariff on cars. Could be a 50 or 100 percent because we don’t want their cars. We want to make the cars in Detroit," Trump stated.
The statement came just after the US president signed decrees imposing a 25 per cent tariff on steel and aluminium imports with no exceptions.
However, analysts doubt the expediency of such actions. Flavio Volpe, president of the Auto Parts Manufacturers Association, warns that such tariffs could halt production by US auto companies.
"Last week, when we thought we were getting a 25 per cent tariff on everything, including cars and parts, I said that as soon as those tariffs come in, within a week, the industry would be shut down," Volpe said in comments to Global News.
It is worth adding that a number of American vehicles are manufactured in Canada, notably the Chevrolet Silverado, Dodge Charger Daytona, and Chrysler Pacifica. Previously, the Chrysler 300 and Dodge Challenger were also produced there.
These threats by Donald Trump could further ignite a trade war between the US and its closest neighbours. In addition, the policy of customs isolation has already received criticism from Ford's management, which considers it disastrous for the American economy.
Sources: Fox News, Global News, CNBC
