"Trade policy does have an impact because it raised costs significantly for steel and aluminum, and the industry told Trump it would do that," says Mary Lovely, professor of economics. "They already weren’t able to sell enough vehicles to keep these lines productive and raising costs by a billion dollars? It doesn’t help."

"They are trying to threaten the Canadians into signing a deal that at this point the Canadians don’t want to sign and there is a gigantic bogeyman in the room which is the 25 percent tariff on Canadian auto imports," says Mary Lovely, professor of economics.