This decision intends to move more production south of the border, but could increase vehicle prices or seriously slow down industry
February 11, 2025 at 20:22
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- Donald Trump threatened Canada with a new 100% price on all nation cars.
- The president believes that this threat could help the United States obtain better trade agreement.
- On the other hand, it could increase vehicle costs and slow down vehicle production.
In a new interview with Fox News Bret Baier, President Donald Trump threatened Canada with up to 100% of cars. The declaration took place after addressing the debt in which the United States is currently facing. On Monday, he signed two proclamations that impose 25% steel and aluminum rates without exception. These movements aim to benefit from the United States, but could also harm him.
“If you look at Canada, Canada has a very large automotive industry. They stole it from us. They stole it because our people were sleeping behind the wheel. If we do not conclude an agreement with Canada, we will put a big price on the cars. It could be a 50 or 100% because we don’t want their cars. We want to make cars in Detroit, “said Trump in his last interview.
Plus: Trump prices could reach 20% of new cars sales in the United States
Although Trump wants better trade agreement and obviously more American jobs, industry experts are not sure that it is a wise decision. “Last week, when we thought we obtained a 25% price on everything, including cars and parts, I said that as soon as these prices arrived, in a week, the industry is closed,” said Declared Flavio Volpe, president of the association of manufacturers of car parts. “This will cause the cessation of production by American automotive companies,” he said Global News.
It should be noted that several American cars are made in Canada, including the Chevrolet Silverado, the Dodge Charger Daytona, Chrysler Pacifica and others now out of production, including the Chrysler 300 and Dodge Challenger. Movements like this led the CEO of Ford to slam what he considers as unfair pricing policies of the administration.
In particular, others called Trump for mentioning the pricing threat in response to a question on creating things like cheaper grocery store for Americans. Trump did not continue to answer the question directly.
