The National Post reports in its Wednesday, April 9, edition that last week, President Donald Trump sent global markets into turmoil, damaged business confidence and rolled back decades of trade liberalization. The Post's Jesse Kline writes that just as the world was recovering from the COVID pandemic, it now faces a new, entirely manmade economic crisis. Automakers find themselves caught between a rock and a hard place. Moving factories that produce auto parts and vehicles to the U.S. would take years. Even American-made vehicles contain thousands of components sourced globally.
Switching to a U.S. supplier for a single part can take months, as they have to be rigorously tested and is highly dependent on whether domestic manufacturers have excess capacity.
Most importantly, in order for companies to make long-term plans to reshore production, risking hundreds of millions of dollars in the process, they need certainty and stability -- characteristics the Trump administration is not exactly known for.
From the start, Mr. Trump seems to have been making up trade policy on the fly. A tariff announced one day can be toned-down, delayed or scrapped the next if a foreign leader tickles him the right way.
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