Edmunds director of insights Ivan Drury joins Asking for a Trend to discuss the far-reaching consequences the Trump administration's incoming tariffs on Canada and Mexico will have for the automotive industry.
Drury points out that approximately one-quarter of all vehicles in the US are imported from Canada and Mexico, a percentage that has been steadily increasing over time.
"The auto landscape, while it's very visible ... when you really break it down and you look at the granularity of the subject, it's highly complicated," he explains, emphasizing that "you really can't shift [vehicle] production overnight; you can't even shift it over a month — even a year."
According to Drury, vehicle manufacturing requires substantial investment, specialized equipment, and intricate supply chain coordination. He describes the industry as "a highly complicated ecosystem" where any change creates a ripple effect that "trickles on down."
Drury concludes, "It really does change the dynamic in the end," adding that "every facet of the industry will be affected by [tariffs]."
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This post was written by Angel Smith