Episode #1433: Today, we’re joined by the legend Jim Fitzpatrick of CBT News. Canada is firing back at the U.S. with $20 billion in retaliatory tariffs, while Jack Demmer Automotive Group is testing drone delivery to get critical auto parts where they need to go faster.

Show Notes with links:

• Two days after new U.S. tariffs hit $20 billion in Canadian goods, President Trump escalated the trade fight directly into automotive, threatening to double tariffs on Canadian cars, trucks and auto parts to 50% starting January 1, 2027.

  • The current 25% auto tariff would jump to 50%, while previously untariffed Canadian auto parts would also be included.

  • The risk cuts both ways: U.S. and Canadian manufacturing is deeply integrated, with parts often crossing the border multiple times before a vehicle is completed.

  • Canada has already announced retaliatory tariffs on roughly $20 billion of U.S. goods beginning September 8, while Canadian imports of U.S. vehicles are reportedly down 22%.

  • Automakers are already feeling tariff pressure. New-vehicle prices were up about $1,315 year over year in Q1, while manufacturers including Toyota have absorbed billions in added costs.

  • Honda Executive VP Noriya Kaihara put a sharper point on the pricing risk: “We are trying to absorb the cost by ourselves or together with our suppliers... but we may have to [raise prices].”

• Jack Demmer Automotive Group is taking a new approach to parts logistics, testing drone delivery between its Ford dealership, warehouse and service center in Wayne, Michigan. The goal is to move smaller, time-sensitive parts faster while avoiding the traffic and road delays that can keep vehicles stuck in service bays.

  • The two-week pilot will run about 12–15 flights per day, moving parts around the Jack Demmer Ford campus.

  • If successful, the program could expand to a 12-mile radius connecting the Wayne and Dearborn dealerships, plus remote repair locations.

  • The drones can carry up to 7.5 pounds, so they won’t replace traditional delivery vehicles, but they could be ideal for smaller critical parts.

  • The initiative is backed by a $740,000 state mobility grant and could eventually reach around 20 drone deliveries per day.

  • Parts manager Mark Hatfield said, “When a critical part is delayed, a vehicle can sit in a service bay longer.”