US president-elect Donald Trump’s recent remarks about wanting to impose tariffs at the US-Mexico border could signal trouble for the Canadian auto industry, says a Viewpoint piece published by the Montreal Economic Institute (MEI). Economic consequences of such protectionist measures to the north could be serious.
Since almost all Canadian auto exports (96 per cent) go to U.S. markets, the industry — and the 125,400 jobs directly connected to it — could face significant repercussions. But U.S. automotive exports to Canada would be affected as well, and so would vehicle cost, say the authors.
“Given these economic realities, we are confident that the Trump administration will ultimately take them into account when crafting actual policies,” says MEI president Michel Kelly-Gagnon.
The Viewpoint piece, titled “Is President Trump a Threat to Canada’s Auto Industry?” is co-authored by Alexandre Moreau, public policy analyst and Germain Belzile, senior associate researcher at the MEI. It’s available at the MEI website.
