North American car companies have operated across borders for three decades. Tariffs would raise prices and cost jobs in the short run, analysts say.

Tariffs of 25 percent could hit goods from Mexico and Canada entering the U.S. as soon as next month, Donald Trump announced on Monday while signing executive orders, signaling the beginning of a potential trade war that could have major effects on the U.S. economy.

On his first day back in office, President Donald Trump reiterated plans to impose levies on products from Mexico and Canada despite concerns from the retail industry.

Canada vowed strong pushback while Mexico urged calm on Tuesday in the face of US President Donald Trump's trade threats that risk throwing their economies into disarray.

President Trump said Monday that he expects to put 25% tariffs on Canada and Mexico starting Feb. 1, while declining to flesh out his plans for taxing Chinese imports.

President Donald Trump said a 25% tariff on Canada and Mexico could come on February 1 and that a universal tariff isn't off the table.

Trump underscored his intention to use tariffs as a tool of international economic policy and an increasingly vital source of government revenue.

This is Washington Edition, the newsletter about money, power and politics in the nation’s capital. Today, trade correspondent Eric Martin looks at the cost of potential tariffs on Canada and Mexico.

Americans buy $900 billion a year in food, cars, TVs, toys, appliances and other goods from Mexico and Canada. The cost of these products could rise if President Trump carries out his threat to apply 25% tariffs.

Trump was quoted saying his team was thinking of tariffs around 25% which could be announced on Feb. 1 but offered no other specifics.

About 28%, or about $844 billion, of all U.S. imports in 2024 came from the two neighboring countries, data from the Census Bureau shows. The automobile industry accounted for imports of more than $202 billion from Canada and Mexico combined.