President Trump is using the threat of stiff tariffs on goods from Canada and Mexico to pressure the two nations to start renegotiating a continental trade deal.

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

After US President Donald Trump declined to impose tariffs on his first day back in power, officials in the Canadian government expressed caution, saying the fight against US protectionism is far from over.