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Krugman 'Shocked' By New Auto Tariff Outlook
Posted
June 27, 2026
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June 27, 2026
38,692
825
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3.00%
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10:46Now PlayingAs the United States, Canada, and Mexico prepare to renegotiate the USMCA trade deal, one industry sits squarely at the center of the debate: automobiles. Companies like Linamar depend on highly integrated supply chains that send components across borders multiple times before a vehicle is completed. Nobel laureate Paul Krugman argues that competition from China demands some trade barriers, while Council on Foreign Relations expert Shannon O’Neil says the region’s manufacturing strength depends on cross-border production. Supporters of the agreement warn that uncertainty poses the biggest risk to investment, jobs, and the future of a trade relationship that supports over a trillion dollars in annual commerce.
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