Retaliate or not? Canada’s tough decision in the event of U.S. tariffs on autos
OTTAWA — Industry leaders say the federal Liberal government will face a complex decision — with deep economic consequences — if the U.S. makes good on its threat to slap 25-per-cent tariffs on Canadian-made cars and trucks.
Ottawa recently retaliated against U.S. President Donald Trump’s levies on Canadian steel and aluminum with reciprocal duties on American sales of the metals, as well as dozens of U.S.-made consumer products.
However, if Canada’s auto sector does indeed become a Trump target, many fear any Canadian countermeasures would have a far greater impact on jobs and the economy in this country than the fallout from the steel and aluminum tariffs.
The chief economist of the Canadian Automobile Dealers Association is urging the federal government to resist retaliatory tariffs on autos, saying matching reprisals would put up to 30,000 jobs at risk in Canada’s retail sector.