U.S. drives forward with 25 per cent tariff on auto imports

The United States is moving forward with imposing a 25 per cent tariff on vehicles imported into the country, set to take effect April 2, and will eventually look to do the same for some automotive parts.

David Adams, president and CEO of the Global Automakers of Canada, said the tariffs are taxes that will hurt consumers by increasing costs, driving up inflation and impacting workers on both sides of the border.

“We need a long-term solution that removes these unjustified tariffs and ensures stability and competitiveness for all North American businesses,” Adams said in a statement.

The Canadian Chamber of Commerce said the tariffs will not be contained to Canada.

“Throwing away tens of thousands of jobs on both sides of the border will mean giving up North America’s auto leadership role, instead encouraging companies to build and hire anywhere else but here,” said Candace Laing, president and CEO of the Canadian Chamber of Commerce. “This tax hike puts plants and workers at risk for generations, if not forever.”

Laing said the North American automotive supply chain has been secure, integrated and has resulted in better cars for consumers since 1965.

“Automotive parts can cross international borders up to eight times before final assembly,” she said. “With this latest tariff, the U.S. administration has committed to taxing America’s automotive manufacturers and increasing the production cost of a car.”

The chamber said around 22 per cent of North American vehicles are produced by the interconnected automotive supply chain between Michigan and Ontario.

“Integrated supply chains like these are there for a reason — because they make sense economically, which makes sense financially for the American and Canadian families and drivers looking for a reliable, affordable and made-in-North America vehicle,” said Laing. “Estimates show, for example, that a pickup truck could cost as much as US$8,000 more with U.S. tariffs.”

Unifor, which represents several workers in the automotive industry, echoed this sentiment, saying U.S. President Donald Trump is ignoring the highly interwoven and tightly integrated supply chain between the United States and Canada.

“Donald Trump has convinced himself that, somehow, the jobs of Canadian autoworkers are his to claim,” said Unifor national president Lana Payne. “We have built cars here for over a century, long before the U.S. was our primary trade partner. I will state this as clearly and unequivocally as I can. These are not his jobs to take.”

“We’re severely disappointed in the U.S. administration’s dogged pursuit of trade policies that harm Americans and Canadians,” said Laing. “With a third of Canadian jobs impacted by the auto sector, every tariff or even threat of a tariff should propel our public and private sectors to work together for the good of all Canadians — and that means taking care of our economy.”