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After a month’s reprieve, the U.S. autos industry is again staring down 25% tariffs on imports from Mexico and Canada, levies that would inject costs into the industry’s highly integrated North American supply chain, The Wall Street Journal reports.
President Donald Trump has previously said the tariffs would take effect Tuesday. The Canada and Mexico levies, if fully applied to vehicles and car parts, are the most immediate of several tariff scenarios facing the industry.
Trump also is planning to add 25% tariffs on imports of steel and aluminum, key materials in vehicles, on March 12. The president has also floated “reciprocal tariffs” to match duties of other countries and sector-specific tariffs that would include the auto industry. Tariffs on Chinese imports also are expected to rise.
The tariffs will raise costs for foreign- and U.S.-built vehicles, because even domestic cars include a significant amount of parts and content from abroad. The levies on Mexico and Canada alone could add around $3,000 to the average U.S. car price, analysts estimate.
