'The supply chain is so tightly integrated': industry reacts to proposed tariffs
Doubts raised over feasibility of U.S. imposing auto tariffs
On Wednesday, the Trump administration announced it was considering a 25 per cent tariff on all vehicles imported into the United States. This latest move rachets up tension in NAFTA negotiations where the auto sector is a major sticking point, with a lot at stake for all three countries.
Phoebe Wall Howard, a journalist who covers auto and labour industries for the Detroit Free Press, says the tariff may not have the effect U.S. President Donald Trump wants.
"The concern in the industry and fear in the industry is whether public policy is being crafted by individuals who truly understand how complicated and integrated the international network is in terms of the supply chain," she told The Current's guest host Laura Lynch.
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Matt Seely, CEO of Quality Bending and Threading, a manufacturing facility in Detroit, is less worried about the proposed tariff.
"Historically, Donald Trump has got a reputation as being someone that comes in with a big ask at the beginning, something that is put out on the table for shock value more than anything, and to get a dialogue started," he said.
Seely believes the tariff may remain, but will end up being much lower once negotiations are completed.
Windsor Mayor Drew Dilkin believes the tariff would be devastating for Canada, but doesn't believe it will come to fruition.
"The supply chain is so tightly integrated with that in Michigan it's almost impossible to understand how one would unwind that," he said.
The Fiat Chrysler plant in Windsor employs about 6,000 workers.
Listen to the full conversation near the top of this page.
This segment was produced by The Current's Alison Masemann, Danielle Carr and Pacinthe Mattar.