Sergio Marchionne

How a Trump tariff could sideswipe U.S. auto industry

How a Trump tariff could sideswipe U.S. auto industry

The threat from President Donald Trump to tax Mexican-made cars sold in the U.S. would throw the industry into disarray, analysts say, forcing some uncomfortable choices: Raise car prices or swallow the cost. Stop selling Mexican-made cars in the U.S. but risk losing customers. Move production to the U.S. but make less money.

"I don't think the auto industry would turn up its feet and die, but it would be a terrible shock. It would create mayhem with their profitability," said Marina Whitman, a business professor at the University of Michigan and a former vice president at General Motors Co.

Trump will be hosting a breakfast meeting Tuesday with the heads of...

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