President Donald Trump says he’s reached a new trade deal with Mexico to replace NAFTA, but he still hasn’t reached a deal with Canada.
Trump says if he can’t reach a deal with Canada, he will raise taxes on Canadian cars. But Canadian cars are American autos manufactured by our neighbors to the north.
So what does this mean for the auto companies and for the consumer?
Michelle Krebs, executive analyst with Autotrader, says ultimately consumers will feel the pain of increased auto prices if a 25 percent tariff is levied against cars made in Canada.
“The auto companies are not going to eat that cost,” she says.
To hear more from Krebs on Detroit Today, click on the audio player above.