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, like the Ford F-150, rely on parts from Mexico. Tariffs could significantly raise car prices, as automakers may pass the costs onto consumers, impacting the overall auto market. The North American auto industry has thrived on free trade, allowing parts to move freely across borders. Trump's tariffs threaten to disrupt this system, potentially leading to higher prices for both imported and domestically assembled vehicles.