One expert calls the proposal “completely unworkable,” warning it could disrupt tightly integrated North American supply.
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United States President Donald Trump’s threat to raise tariffs on Canadian autos and auto parts to 50 per cent starting in January would wreak havoc on Ontario’s already battered auto sector – but also inflict significant pain on U.S. automakers, industry watchers say.
“This is a completely unworkable scheme,” said Peter Frise, an automotive and mechanical engineering professor at the University of Windsor.
“It’s a self-defeating, self-damaging thing to do, and they will have been told that by the car companies . . . We’re going to get hurt, but the Americans are going to get hurt too.”
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The latest threat from Trump came Monday, after trade negotiations between the two countries broke down last week, resulting in 50 per cent tariffs on $28 billion worth of Canadian goods taking effect Saturday.
In response, the Canadian government announced Tuesday it will impose $27.6 billion worth of counter-tariffs starting Sept. 8 as part of a dollar-for-dollar response to the U.S. levies.
Canadian-made cars and parts already face a 25 per cent tariff when entering the U.S., with carve-outs for American-produced content as well as Canadian components that meet the criteria under the Canada-U.S.-Mexico Agreement, better known as CUSMA.
