Expert: Potential tariffs 'would hurt Michigan, Ontario a lot' with car industry impact

FOX 2 - On the Ambassador Bridge alone — billions of dollars in auto parts travels between the United States and Canada.

It may also be the reason why Michigan would feel the impact of a potential tariff by the new Trump administration on steel and aluminum.

Related: Trump imposes sweeping steel, aluminum tariffs

The backstory:

"Michigan is extremely vulnerable because a big part of our industry involves sending entirely completed vehicles — cars and trucks — and parts assemblies back and forth, sometimes twice for the same vehicle," said Patrick Anderson, Anderson Economic Group CEO. "If we see a tariff war, Michigan will get hurt and Ontario would get hurt a lot."

Anderson considers the Trump administration’s tariff proposal a serious threat - but it’s not uncommon.

Both presidents Donald Trump and Joe Biden previously implemented steel tariffs.  Anderson says it caused a slight increase in domestic production.

If tariffs happen this time, we could see a $4,000 to $10,000 jump in prices to manufacture a car, which has other impacts too.

"You would see it at the grocery store — our food prices. You would see it if you were shipping out food products," Anderson said.

"Car prices are only going to go up with these tariffs. if you’re in the market to buy a car, time to pull the trigger and get it," said John McElroy.

McElroy, with Autoline, says the price hike would be immediate.  Prospective car buyers with low credit scores may get pushed out of the market too.

That’s unless Canada and Mexico can reach an agreement with President Donald Trump on border security.

"Everything he’s talking about seems to be a negotiating ploy," McElroy said. "It’s his stance on how to start negotiations. you’re going to see a lot of negotiations between the US, Canada, and Mexico."