Experts warn against Canada building its own cars amid U.S. tariff threats

cbc.ca

U.S. tariffs on Canadian products, including steel and aluminum, have raised concerns in Canada's auto sector. Experts warn that building cars solely for the Canadian market is not feasible due to high costs and the integrated nature of the North American auto industry. President Trump has threatened tariffs of up to 100% on Canadian-made cars if a deal is not reached. This could disrupt supply chains, as many car parts cross the Canada-U.S. border multiple times during production. Experts suggest Canada should explore new markets beyond the U.S. and improve trade routes with Asia and Europe. They emphasize that creating a sustainable domestic auto industry is impractical, as seen in Australia's failed attempts.


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