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Why carmakers are staying quiet despite 'cataclysmic' Canada tariff threat - Politico
Business and EconomyBy Daniel Desrochers, Oliver Ward8/26/20261 min read
Trump has threatened to raise tariffs on automobiles and parts to 50 percent if Canada and the U.S. can’t strike a deal by Jan. 1.
✨ Key Highlights
- President Trump has threatened to raise tariffs on automobiles and auto parts to 50 percent if Canada and the United States fail to reach a trade deal by January 1.
- The steep proposed increase has been described as potentially "cataclysmic" for the automotive industry, given the deeply integrated cross-border supply chains between the two countries.
- The Trump administration has defended the tariff threat by arguing that Canada and other trading partners can no longer "freeride" off the United States, framing the move as part of an "America First" agenda.
- Despite the significant stakes, carmakers have largely stayed quiet on the issue, avoiding public confrontation with the administration over the potential trade measures.
- The threatened tariffs come amid broader tensions in the U.S.-Canada trade relationship, with negotiations tied to a looming year-end deadline.
As the President has made clear, Canada and other trading partners cannot keep freeriding off of the United States, and the Trump administration will continue to put Americans and America First, Desa