U.S. auto tariffs may be less severe than initially thought, says Doug Ford
Ontario Premier Doug Ford has received some reassuring news from U.S. Commerce Secretary Howard Lutnick regarding the impending auto tariffs that President Donald Trump recently announced. According to Ford, Lutnick informed him that the tariffs may not apply to all finished vehicles entering the United States from Canada.
Trump signed an executive order on Wednesday, imposing a 25 per cent import tariff on vehicles not made in the U.S. starting April 2. He also threatened a 25 per cent tariff on certain auto parts made outside the U.S. in May, with the potential for tariffs on all auto parts in the future. However, Ford revealed that tariffs on vehicles imported from Canada might be lower than initially anticipated.
In a conversation with Lutnick, Ford learned that vehicles made with more than 50 per cent U.S.-made parts would not be subject to tariffs. Vehicles with less than 50 per cent American-made parts would face a 12.5 per cent tariff, half of what Trump had announced. Despite the potentially reduced impact, Ford expressed that any tariff would still be detrimental.
The Ontario government is currently assessing the number of vehicles partly made in Canada that would be exempt from tariffs under the new definition. Discussions between Canada and the U.S. have been ongoing, with hopes of further negotiations before the April 2 deadline.
Ford and Canadian Prime Minister Mark Carney are considering retaliatory measures in response to Trump’s tariffs. Carney emphasized the potential economic impact of the ongoing trade war and stressed the importance of protecting Canada’s auto industry. He previously proposed a $2-billion strategic response fund to support the competitiveness of the auto sector and safeguard manufacturing jobs.
Meanwhile, Ontario auto workers are rallying to defend their industry against the looming tariffs. Union representatives at Oshawa’s General Motors plant are strategizing to combat the potential repercussions. Unifor’s national president Lana Payne asserted that Canada’s auto industry is not for Trump to exploit, emphasizing the need to protect Canadian jobs.
Workers in the auto sector, including those at Lear Oshawa, are concerned about the impact of tariffs on their livelihoods. Bill McCollom highlighted the potential job losses and economic downturn that could result from GM moving production. Workers urged the government to take decisive action to support the auto industry and preserve Canadian jobs.
In conclusion, the uncertainty surrounding the auto tariffs has created significant challenges for Ontario’s auto sector. Ford, Carney, and industry stakeholders are working to mitigate the potential impact and protect Canadian workers and businesses in the face of escalating trade tensions.
