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Tariffs that hurt Canada will hurt the competitiveness of the U.S. auto industry as well, Trudeau said, adding some automobile pieces cross the border six times before they end up in an assembled car.

“We will continue to be very firm in our defence of Canadian auto workers while underlining that to attack Canada, it will end up hurting the U.S. too, and no one wants that,” the prime minister said.

The tariff threat is “perplexing” because it would make cars more expensive in the United States if imposed, said David Adams, president of Global Automakers of Canada, which represents Japanese car manufacturers Honda Motor Company, Ltd. and Toyota Motor Corp.

“The prospect of a tariff on imported vehicles is obviously disconcerting and I would think particularly so for American consumers who would end up paying more for their vehicles,” he said Thursday.

Photo by Mark Kauzlarich/Bloomberg

The harm in Canada caused by tariffs would vary depending on how severe and wide ranging they are, he said.

“Maybe other countries were in mind when the president was contemplating that but the reality is the two largest importers into the United States are Canada and Mexico,” he said.

The Canadian auto sector supports about 500,000 direct and indirect jobs, according to the Canadian Vehicle Manufacturers Association. About 95 per cent of Canadian-made vehicles are exported to the United States.

A vehicle tariff that includes Canada could penalize American manufacturers Ford Motor Co. and General Motors Corp., which have assembly plants in Canada, as well as Italian-American Fiat Chrysler Automobiles NV.