The U.S.-Canada trade war is creating a headache for auto-parts makers
Escalating trade tensions between the U.S. and Canada, including new tariffs on steel and aluminum, are creating significant supply chain disruptions for the automotive industry. Manufacturers and smaller parts suppliers are struggling to plan for costs and production amidst the ongoing trade war.
Why it matters
It illustrates the economic impact of protectionist trade policies on deeply integrated cross-border manufacturing sectors.
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The U.S. and Canadian auto industries have been tightly woven together for decades. But the latest tariff flareup between the two countries may complicate that.
The Indicator from Planet Money Canada fights tariffs with tariffs World, reordering As Canada readies retaliatory tariffs, Mark Carney says his nation is 'at war' with U.S. Think of that sticker on the windows of new cars breaking down how much of the vehicle's content comes from the U.S. and Canada. From a manufacturing point of view, content from both places has long been considered deeply intertwined.
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