ICYMI: Trump’s Taxes Would Be a “Disaster” for America’s Auto Industry Arrow

Key Point: "President-elect Donald J. Trump's threat to impose 25 percent tariffs on goods from Mexico and Canada sent shivers on Tuesday through the auto industry, which depends heavily on both countries for parts and manufacturing."

New York Times: Trump's Tariffs Would Deal a Big Blow to the Auto Industry

By: Jack Ewing and Neal E. Boudette

• President-elect Donald J. Trump's threat to impose 25 percent tariffs on goods from Mexico and Canada sent shivers on Tuesday through the auto industry, which depends heavily on both countries for parts and manufacturing.

• The prospect of tariffs "is a two-alarm fire for the auto industry," said Patrick Anderson, chief executive of Anderson Economic Group, a consulting firm in Michigan. "There is probably not a single assembly plant in Michigan, Ohio, Illinois and Texas that would not immediately be affected by a 25 percent tariff."

• The list of popular vehicles made in Mexico or Canada is long. It includes Ram pickups made by Stellantis in Saltillo, Mexico, and Chrysler minivans built in Windsor, Ontario. General Motors makes Chevrolet Silverado pickups and electric versions of Equinox and Blazer S.U.V.s in Mexico, where Ford also makes its Maverick pickup.

• All of those vehicles and many others would become significantly more expensive if Mr. Trump, who won the state of Michigan with promises to preserve auto jobs, followed through on his threat. Those higher auto prices would have a significant effect on overall inflation.

• Wall Street was clearly alarmed. G.M.'s stock was down about 8 percent on Tuesday morning after Mr. Trump's statement on tariffs. Stellantis, the owner of Ram, Jeep and Chrysler, fell about 5 percent, and Ford was down 2 percent.

• Tariffs "would spell disaster for the U.S. auto industry," analysts at Bernstein said in a note to investors.