Trump pauses tariffs on Canada and Mexico. Here's why it matters to automakers

The auto industry has built a North American supply chain that ping-pongs parts between the U.S., Mexico and Canada. Tariffs of 25%, if actually imposed, would be costly for buyers and the industry.

Trump pauses tariffs on Canada and Mexico. Here's why it matters to automakers
A car hauler carries Toyota RAV4 vehicles as it enters to cross the Ambassador Bridge in Windsor, Ontario to go to Detroit, Michigan on February 3.

The auto industry has built a North American supply chain that ping-pongs parts between the U.S., Mexico and Canada. Tariffs of 25%, if actually imposed, would be costly for buyers and the industry.

(Image credit: JEFF KOWALSKY)