Hundreds of billions of dollars’ worth of raw materials, parts and vehicles ping-pong in and out of all three countries every year.
How many of those crossings will trigger a new tax is unclear because Trump has added, removed and revised tariffs since January. Most recently, on March 26, he announced a 25 percent tax on cars and parts imported into the United States. Tariffs on steel and aluminum took effect earlier in March. Another set of tariffs on autos and parts is nearing the end of a one-month reprieve, and he said he will impose broader tariffs on April 2.
Analysts, researchers, manufacturers and trade groups said the tariffs could raise the price of each new car by thousands of dollars and scramble long-standing supply chains. Retaliatory tariffs by Mexico and Canada could ratchet up prices even further.
You can see the problem in miniature by watching the possible path of an ingot of Quebec aluminum as it bounces across borders and ends up in a Chevrolet Silverado.
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