U.S.-Canada Car Trade: Both Have a Lot to Lose

Having announced an agreement with Mexico over a replacement to NAFTA, U.S. President Trump turned his attention to the other party in the original trade agreement Canada. In typically combative style, Trump said his northern neighbors would have to "negotiate fairly" to get in on the deal and at the same time pointed out that it would be just as effective and far simpler for him to just slap tariffs on car imports from the country.

While this is probably just bluster, and a tactic to get Canada to the negotiating table again, this infographic reveals that both Canada and the U.S. have an awful lot to lose should the president's threat escalate into a tit for tat trade war. U.S. Department of Commerce figures show that while Canada is the second most important source of new cars for the States, it is also the most valuable export market for the U.S. auto industry - and by an awfully long way.