If U.S. President Donald Trump follows through on his threats to close the country’s border with Mexico, Canada will feel the effects immediately, says a Toronto-based trade lawyer.
“I think you’d see the auto companies and auto parts makers try to get into court to get a temporary injunction, which would probably last,” Warner told CTV’s Your Morning Wednesday.
North America’s auto market is heavily integrated, with parts and components crossing both borders multiple times. And in a just-in-time delivery model, parts manufacturers and car makers do not have stock to backfill their supply chains. Trump warned Friday that he would close the border, or large sections of it, if Mexico did not stop all illegal immigration immediately. He said there is a “very good likelihood” that he would take action this week, emphasizing “I am not kidding around.”
Warner expects it would play out much like Trump’s legislation to suspend or severely curtail the entry of refugees from seven countries in early 2017. It was fought in a number of district courts, which granted temporary injunctions. Softened legislation was eventually upheld by the U.S. Supreme Court in June 2018.
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