Will Donald Trump Trump Automotive Trade Between Canada and the US?

Will Donald Trump Trump Automotive Trade Between Canada and the US?

The average North American auto part crosses a NAFTA border seven times before the finished vehicle is ready for sale.

Why Donald Trump Matters

Will Donald Trump, trump automotive trade between Canada and the U.S?

Since Trump was sworn in to his presidency on January 20th, 2017 the automotive industry has been curiously awaiting his decisions. His talk allows us to believe he will withdraw from the Trans-Pacific Partnership and renegotiate the NAFTA agreement, both moves that have negative and grave impacts in the automotive industry. His intentions of regaining jobs could result in a 35 percent tax on cars not made in America. This border tax will disrupt the flow of the automotive industry leaving uncertainty on the countries affected, mainly Canada and Mexico.

Although Trump’s decision has visible negative impacts it is important to note what the countries that are impacted by his proposed border tax will do. Canada is one of those countries which will be most gravely affected next to Mexico. There are several reactions that could be beneficial to our economy

  1. This will give Canada the opportunity to expand relations outside of the U.S. We will need to work on other relations like that with Mexico and Greenland. This can go in many different directions and opens a wide array of new options for our industry.
  2. Canada must keep business in Canada. What better way to improve our economy than to keep business circulating within our own borders? Manufacturing, and promoting sales within Canada will be beneficial for job creation and overall circulation of money within the economy. Changing the dependency from the U.S. onto Canadian citizens has great potential for the whole of the industry.


Potential positive and negative impacts leave us unsure of what’s to come. Guess we must wait and see!