US Tariff Threatens Jobs in Key States Amid Proposed Auto Tariffs

A proposed US tariff on Canadian-made vehicles could have significant effects on certain states and industries in the US, according to a report by Oxford Economics. The 50% tariff would primarily affect key states such as Kentucky, Michigan, and Indiana, which have strong links to Canadian auto procurement.

The report estimates that two-thirds of exposed jobs will be in sectors other than automotive manufacturing, similar to the impact seen after the imposition of a 25% steel tariff in 2018. While the overall US economic impact remains minimal at the national level, the state-level effects will be heavily concentrated, with Kentucky facing the highest exposure.

Oxford Economics notes that Canadian auto manufacturers' purchases of parts and other goods from US businesses support an estimated 0.12% of US jobs. A 50% tariff on Canadian-made vehicles would put some of these jobs at risk.