The auto industry has built a North American supply chain that ping-pongs parts between the U.S., Mexico and Canada. Tariffs of 25%, if actually imposed, would be costly for buyers and the industry.

President Donald Trump’s threatened tariffs against Canada and Mexico risked blowing up North America’s economy.

U.S. President Donald Trump on Saturday ordered 25% tariffs on Canadian and Mexican imports and 10% on goods from China starting on Tuesday and declared that they would remain in place until a national emergency over the drug fentanyl and illegal immigration to the U.