How the trade war with Canada is affecting auto-parts makers : NPR

Key Points:

• The longstanding intertwined auto industries of the U.S. and Canada face disruption due to escalating trade tensions, including new tariffs on steel, aluminum, and potentially vehicles and parts starting January 1.
• The complex North American auto supply chain, which often involves parts crossing borders multiple times during assembly, now faces increased costs and uncertainty, especially impacting smaller suppliers of components.
• Industry leaders warn that the tariffs complicate planning and investment decisions amid ongoing challenges like COVID-19 supply chain issues and the shift to electric vehicles, potentially weakening North American competitiveness.
• Automakers and suppliers are cautious about altering supply chains due to the high costs and time involved, as well as the unpredictability of future trade policies and political changes.
• The trade conflict risks hindering the region's ability to compete globally, particularly against emerging Chinese electric vehicle manufacturers, as the industry struggles to adapt quickly to both political and technological changes.