Is there something like a car in America anymore?

Donald Trump says he wants to see more vehicles in America. It is a useful slogan and may have been a viable idea.

The problem is that there is nothing like a car in America. There were no years.

Since Canada and the United States signed the auto agreement in 1965, auto manufacturers have benefited from the relative feature in both countries to make the industry more competitive and productive more efficient and more affordable cars.

Experts say customs duties will be effectively declining from these advantages almost immediately.

“It is the same as Trump’s nonsense that is not supported by paper works that will harm (the American auto industry) worse than that will harm Canada,” said Flavio Volby, President of the Auto Parts Factors Association (APMA).

Case study

Any vehicle made in North America is manufactured via a complex network of interconnected supply chains that use raw materials and spare parts that extend on the entire continent.

Consider the rear assembly of a car made in North America.

This drawing was placed together by APMA. It says that she is based on its actual contracts. Companies’ names have been revised to respect competitive confidentiality.

Each point is a different company that provides the materials or part required to complete the rear assembly.

To destroy the process further, everything begins as raw materials in one country, in one part in another, then it was transferred again to assemble it to a wider component, before finally assembled and finally shipped to the customer.

Rubber is treated in Monterrey, Mexico. It is formed in a conductor in Iowa. This piece is suitable for the Brampton control arm set. The control arm is placed together as part of the rear suspension group in Detroit. The rear assembly is shipped to Windsor, Oanton, for the final assembly and ultimately sold in California.

New Nava

You can put a similar chain for each individual part in any car.

The whole process is only implemented when these ingredients can move across the border free of tariffs.

This was a major component of the North American Free Trade Agreement in 2018. When it was announced, Trump had the newly expanded state and Mexico as a leader of the American auto industry.

“Once I agree, this will be a new dawn for the American auto industry and to Overc in the field of American auto,” Trump said in 2018.

However, as announced by Silvo’s latest tariff, Trump announced mainly his trade deal.

The administration wrote, “It was also advised that the agreements concluded before the issuance of the 9888 advertisement, such as the reviews of the Free Trade Agreement, the United States, Korea, and the United States Convention on Mexico and Canada (USMCA), did not result in sufficient positive results,” the administration wrote.

But retracting the current situation will come at a huge cost.

“There is not a truly car made in North America only,” said Patrice Malatis, one of the international auto manufacturers in Canada.

He says that nature on the continent level for the complex supply chain costs billions of dollars and it took decades.

“You have to dismantle a lot of these supply chains mainly and put new chains, and this takes a lot of time and takes a lot of money.”

He says that the new manufacturing factory may cost anywhere from two billion dollars to 10 billion dollars.

“This is only the factory, then you have to look at all the supply chains of this factory.”

Even if car manufacturers have already agreed to transfer production to the United States, it will take years.

Experts say that the customs tariff will lead to the erosion of the industry

Meanwhile, experts say the industry will be subjected to tariffs.

“You will feel almost immediately,” said Jean Griffiths, former CEO of American cars and founder of the Industry Association, Gravitas Detroit.

Instead of trying to use the customs tariff to compel the change that will cost everyone, it says that Trump should provide an applicable path forward to Canada, Mexico and the United States.

She told CBC News: “If it is a matter of re -negotiation with USMCA, let’s do that, but let’s do that now and let us come out of uncertainty outside the system. Businessmen cannot deal with this level of uncertainty,” she told CBC News.

But Griffiths says the industrialization base that was present in the United States “is no longer here.” It has long been replaced by one of the most efficient and most expensive manufacturing operations in the world.

Even the threat of retreating from that network has already shook the markets, eroded confidence and pushed to an almost unprecedented level among the largest industries on the continent.