U.S. Auto Jobs at Risk Amid Looming Tariff War

The auto industry faces potential job losses as President Donald Trump’s proposed tariffs on imported vehicles could lead to higher prices for buyers, reduced profits for automakers, and factory layoffs, CNN reported.

Mexico and Canada—key players in North America’s auto industry—export millions of vehicles to the U.S., all containing a significant share of U.S.-made parts.

While Trump argues that tariffs will bring auto production back to the U.S., industry experts caution that such a shift would take years—if it happens at all. In the short term, U.S. auto and parts production will suffer, as the global supply chain is highly interconnected.

Mexico and Canada—key players in North America’s auto industry—export millions of vehicles to the U.S., all containing a significant share of U.S.-made parts. According to S&P Global Mobility:

• 61% of the 4 million cars built in Mexico last year were shipped to the U.S.

  
  

• 86% of the 1.3 million cars built in Canada were sent to U.S. dealerships.

  
  

• The U.S. exported $35.8 billion in auto parts to Mexico and $28.4 billion to Canada.

  
  

If tariffs lead to plant closures in Mexico or Canada, U.S. suppliers will suffer, reducing domestic production and jobs. Patrick Anderson, president of the Anderson Economic Group, warns that automakers are now in “a serious predicament.”