Production chaos from U.S. tariffs already hurting Canadian companies, auto parts makers warn [Video]

A lead representative of Canada’s automotive parts sector is warning that U.S. President Donald Trump’s latest tariff plans would decimate vehicle production on both sides of the border, causing business to dry up for hundreds of supplier companies.

On Wednesday, Mr. Trump said automobiles and auto parts imported to the U.S. will face 25-per-cent tariffs. Vehicles imported under the USMCA will be taxed at the same amount, and the rate will be calculated based on their non-U.S. content. Auto parts under the trade agreement will face tariffs at a later date, also calculated based on non-U.S. content.

“He may just be crazy enough to take the entire industry over the ledge,” said Flavio Volpe, the president of the Automotive Parts Manufacturers Association, in an interview Thursday.

Even before the announcement, Mr. Volpe’s members were struggling with a series of punitive trade policies introduced or threatened by Mr. Trump this winter. That particularly applied to companies …