More U.S. tariffs would be ‘very damaging,’ auto industry tells MPs
Global News
Canada's automotive industry representatives said some vehicle manufacturers are voicing concern about being seen as 'too American' in the tense climate.
Canada’s automotive industry is sounding the alarm that it would be “very damaging” if more tariffs are put into place — and also that some vehicle manufacturers are voicing concern about being seen as “too American” in the tense climate.
This comes after U.S. President Donald Trump abruptly cut off trade talks and declared he would add a 10 per cent tariff on top of current levies in place on Canada — a move Trump said was because of an anti-tariff commercial produced by the Government of Ontario.
A panel of representatives from Canada’s automotive sector met with a federal standing committee in Ottawa Monday to discuss the “challenging” environment that tariffs and the trade war have created.
“It would be extremely challenging if more tariffs go into place, particularly if they apply to all products that currently qualify under CUSMA,” said Brian Kingston, president and chief executive officer of the Canadian Vehicle Manufacturers’ Association (CVMA).
“So we don’t know yet how these will be applied, but an additional 10 per cent will be billions of dollars in costs onto this sector (automotive) and other Canadian sectors. So very damaging and hopefully we can find an off-ramp.”
Trump was not clear if the additional tariffs would apply to all sectors, or specifically-targeted industries, and on Monday did not say when asked when those might go into effect.
Carney responded to Trump pulling the plug on trade negotiations, saying, “We can’t control the trade policy of the United States.”
Trump’s tariff policies mean products may face additional costs if they do not fall under the terms of the Canada-United States-Mexico Agreement (CUSMA), which is set for a formal review in 2026.
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