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Once tariffs are imposed, those parts will get more expensive, but U.S.-based manufacturers don't have the ability to quickly address the new demand for domestic parts.
He says 22 per cent of U.S. vehicles are assembled in Canada and Mexico.
"Estimates are that to replace Canadian production, you would need five, six new assembly plants in the United States at a cost of $50 billion. That is just not realistic." he said.
He anticipates rising vehicle prices along production stoppages at plants across North America as cross-border supply chains — which the auto sector relies deeply on -— are turned on their head.
"And ultimately, we could see job losses in the sector as as companies grapple with this new reality," he said.
He says 22 per cent of U.S. vehicles are assembled in Canada and Mexico.
"Estimates are that to replace Canadian production, you would need five, six new assembly plants in the United States at a cost of $50 billion. That is just not realistic." he said.
He anticipates rising vehicle prices along production stoppages at plants across North America as cross-border supply chains — which the auto sector relies deeply on -— are turned on their head.
"And ultimately, we could see job losses in the sector as as companies grapple with this new reality," he said.