Trump plans 25% tariffs on goods from Mexico and Canada to protect US auto industry

President-elect Donald Trump plans to impose a 25% tariff on goods from Mexico and Canada starting on his first day in office. This move aims to protect American-made cars, but most vehicles contain parts from both countries, complicating the definition of "American-made." Currently, no car exceeds 75% domestic content, and many popular models rely on imported parts. Automakers' stocks fell following Trump's announcement, as the tariffs could significantly raise vehicle prices and disrupt the North American auto supply chain. Trump's tariffs could also affect cars imported from China, which supplies many low-cost auto parts. The potential for increased costs may lead to higher prices for consumers and limit vehicle availability in the U.S. market.