Donald Trump says he wants to see more vehicles made in America. It’s a handy slogan and might once have been a viable idea.
The problem is there’s no such thing as a Made in America car anymore. And there hasn’t been for years.
Since Canada and the U.S. signed the Auto Pact in 1965, auto manufacturers have leveraged the comparative advantage in both countries to make the industry more competitive, production more efficient and vehicles more affordable.
Experts say tariffs would effectively undo those advantages almost immediately.
“It’s the same Trump nonsense that is not backed by paperwork that is going to hurt [the] American auto industry worse than it will hurt Canada,” said Flavio Volpe, head of the Automotive Parts Manufacturers’ Association (APMA).
A case study
Any vehicle made in North America is manufactured via a complex web of interconnected supply chains that use raw materials and parts suppliers that span …