....Trump does not understand the intricacies and how interconnected the entire manufacturing process, not just in auto industry but across a number of industries.
....The end result would either be lower margins for producers but more likely higher prices passed onto consumers. Higher prices result in lower demand. Lower demand will result in less jobs and end with dampening economic activity.
This BBC graphic is a good way to show why reciprocal 25% tariffs will cause prices on some goods to go up far more than 25%. A piston used in a car engine made in Michigan will cross the U.S. border twice, and will be taxed 25% each time. Some products cross more than that.
