The latest threat by U.S. President Donald Trump to raise auto tariffs on Canadian-made vehicles could dismantle the integrated North American auto industry, according to Unifor.
In a news release, the union said Trump’s remarks come only a few weeks after he imposed a 25 per cent tariff on all automobile imports into the U.S. Although there is a partial exemption for vehicles manufactured under the Canada-U.S.-Mexico Agreement, those tariffs will also apply to Canadian auto parts as of May 3. (A recent announcement this week by the Trump administration seeks to ease the situation slightly so OEMs will shift production back to the U.S.).
In a statement, Unifor National President Lana Payne said it is clear the U.S. wants to take Canada’s auto jobs and plants. “Canada didn’t take U.S. jobs, and we’re not going to let him take ours,” she said. “We’ve been building cars in Canada for over a century and we’re not stopping now.”
Unifor said Canada annually ships around $75 billion worth of cars and parts to the U.S. and imports back an equal amount. They highlighted that forecasts have shown U.S. tariffs will cause a severe reduction in North American auto sales. That in turn will result in job losses and layoffs — on both sides of the border.
“These tariffs are not just dangerous, they are destructive,” said Payne in a statement. “If sustained, they will decimate auto jobs across North America and drive costs to an unsustainable level.” She also noted that Canadians buy more vehicles than Canada produces. “If automakers want to sell here, they have to build here too. That’s how a fair system works.”
The union is calling on the federal government to take immediate action to protect Canadian auto workers and to stand up against the U.S. with “strategic” retaliation.
