Canada

‘Shock and disbelief:’ Businesses in Windsor, Ont., brace for U.S. tariffs

The recent announcement by U.S. President Donald Trump to impose a 25 per cent tariff on Canadian products has sent shockwaves through the business community, with many expressing disbelief and concern over the potential impact on the economy. Peter Gossmann, the sales manager at Windsor-based Cavalier Tool and Manufacturing Ltd., described his reaction as one of “shock and disbelief” at the news.

Gossmann emphasized that the timing of the tariffs was particularly alarming, given that Trump has only been in office for a short period and may not have fully assessed the consequences of such a drastic measure. He expressed worries about the significant impact that a 25 per cent tariff could have on Canadian businesses, stating that none of them can afford to pass on such a cost increase to their customers without facing serious repercussions.

The White House press secretary, Karoline Leavitt, confirmed the president’s plan to impose tariffs on Canada, Mexico, and China, with rates varying between 10 and 25 per cent depending on the product. This decision has raised concerns among various industries, including automotive manufacturers, who fear that production could come to a halt as a result of the tariffs.

Michael Robinet, a vice president at S&P Global Mobility, warned that vehicle manufacturers may be forced to stop production if they are unable to absorb the additional costs imposed by the tariffs. Similarly, Shawez Khan, the chief financial officer of Dainty Foods in Windsor, expressed concerns about the potential impact on the company’s operations, particularly its reliance on U.S. imports and exports.

In response to the looming threat of tariffs, business owners like Khan are calling for diplomatic efforts to appease President Trump and prevent further escalation of trade tensions. Windsor Mayor Drew Dilkens has also joined the push for a united front against the tariffs, emphasizing the need for effective negotiations to avoid a catastrophic economic fallout.

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Louis Jahn, president of the Canadian Tooling and Machining Association, urged Trump to reconsider his focus on targeting Canada and instead direct his attention towards China, a common competitor to both countries. Jahn highlighted the intricate interconnectedness of the North American auto manufacturing industry, with components crossing borders multiple times during the production process.

As the business community braces for the impact of the tariffs, there is a shared hope that diplomatic solutions will prevail and prevent further disruptions to cross-border trade. The uncertainty surrounding the future of Canadian-American trade relations underscores the need for strategic dialogue and cooperation to mitigate the potential fallout on both economies.

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