U.S. tariffs on imports threaten automotive industry disruption, warns Magna CEO

U.S. tariffs on imports from Canada and Mexico, set to begin next month, are expected to disrupt the automotive industry, according to Magna International's CEO Swamy Kotagiri. Some customers are considering shifting production to avoid the 25% tariffs. Magna's earnings could drop by 20% if the tariffs remain for a year. The company reported a 25% profit decline in the fourth quarter of 2024, with revenue flat for the year. The tariffs threaten decades of tariff-free trade in the integrated North American auto sector. In response to the tariffs, Canada plans to impose retaliatory tariffs on various U.S. goods. Industry leaders warn that the tariffs will increase costs for U.S. companies and consumers, potentially leading to inflation and job losses.