Trump Now Warns Canada of Possible Car Tariffs Reaching 100% | Carscoops

      The initiative aims to shift more production to facilities south of the border, but it may lead to increased vehicle prices or significantly hinder the industry as a whole.

      Donald Trump has issued a warning to Canada about imposing a 100% tariff on all cars imported from the country.

      The President believes that this threat could enable the USA to negotiate a more favorable trade agreement. However, it might also elevate vehicle prices and disrupt production.

      In a recent interview with Bret Baier of Fox News, President Trump reiterated his threat of a tariff of up to 100 percent on cars from Canada, following his comments on the country's current debt. This past Monday, he enacted two proclamations imposing 25 percent tariffs on steel and aluminum across the board. While these actions are intended to benefit the USA, they could have detrimental effects as well.

      “If you examine Canada, they possess a substantial car industry. They took it from us because we weren’t paying attention. If a deal isn’t reached with Canada, we will impose significant tariffs on their cars, possibly as high as 50 or 100 percent, because we prefer to produce our vehicles in Detroit,” Trump asserted in his latest interview.

      More: Trump’s Tariffs Might Impact 20% Of New Car Sales In The US

      Although Trump seeks a more advantageous trade agreement and more American jobs, industry experts have reservations about this strategy. “Last week, when we anticipated a 25 percent tariff on everything, including vehicles and parts, I stated that once those tariffs were enacted, the industry would be paralyzed within a week,” remarked Flavio Volpe, president of the Automotive Parts Manufacturers Association. “It will lead to the halt of production by American automotive companies,” he commented to Global News.

      It is important to mention that various American models, such as the Chevrolet Silverado, Dodge Charger Daytona, and Chrysler Pacifica, are manufactured in Canada, alongside others that are no longer in production like the Chrysler 300 and Dodge Challenger. Actions of this nature prompted Ford’s CEO to criticize what he perceives as unjust tariff policies from the administration.

      Additionally, some have criticized Trump for bringing up the tariff threat in response to a question regarding the reduction of grocery prices for Americans, a question he did not address directly.

      Image Credit: White House / YouTube