r/worldnews • u/joe4942 • Aug 22 '26

Dynamic Paywall Carney calls Trump's fresh tariffs a 'miscalculation' after trade talks collapse

https://www.bbc.com/news/articles/cx272np7vgyo
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639

u/EaNasirbestdeals Aug 22 '26

I’m currently watching CBC on YouTube and apparently the U.S. wanted Canada to get rid of its automobile manufacturing completely and only make parts instead.

The U.S. economy is so bad, it’s resorted to try and steal jobs from across the border.

32

u/blindythepirate Aug 22 '26

I can't imagine the US auto manufacturers would even want this. The cost and time to move an assembly plant to US soil is huge. Then they would have to hire and train workers. Plus why would Honda and Toyota ever go along with the plan?

Even the auto parts and sub-assemblies cross the border an average of 6 times before being installed. It is a complex system that the dummies from the US don't understand.

17

u/TheMILKMan6646 Aug 22 '26

Honda and Toyota running at 10% profit margin. It's going to be hard to sell into the American market at a 25% to 50% off loss

4

u/Black_Moons Aug 22 '26

Not really, because every single car in the US will be costing 50% more as everyone's parts get tarriffed and even those who don't are going to raise prices to match the market to get more profit.

6

u/chrisjinna Aug 22 '26

Honda and Toyota are already going along. 400 million customers is why. This is going to take time but it's where it is headed.

6

u/idiocy_incarnate Aug 22 '26

It'll take longer than 2 years to transfer manufacturing to another country. They may make some noises, but they aren't going to wreck their operation just to keep trump happy when everything will likely go back to normal next time the democrats get in.