Canadian auto industry already feeling impact of Trump’s tariffs

The fallout has started from what U.S. President Donald Trump describes as his “global reciprocal tariffs.”

Trump declared a “national emergency” Wednesday in order to justify the tariffs.

The previously announced 25 per cent tariffs on Canada are still moving ahead and yesterday Prime Minister Mark Carney says that this latest announcement will fundamentally change the international trading system.

Trump declared yesterday a 10 per cent baseline tax on imports from all countries and higher tariff rates on dozens of nations that run trade surpluses with the United States.

A chart that he brought out in the Rose Garden listed what reciprocal tariffs each country faces on imports including a 34 per cent tax on China, 20 per cent on the European Union, 46 per cent on Vietnam and 49 per cent on Cambodia.

The White House says goods imported under the Canada U.S. Mexico Trade Agreement still does not face tariffs.

Auto industries here in Canada are already feeling the effect of the tariffs.

Industry leaders warned that the auto sector would come to a halt at least within a couple of days.

One Stellantis assembly plant in Windsor announced Wednesday that they are pausing production for two weeks – there’s been no word on if similar measures are taking place at auto plants in St. Catharines and Oakville.

National Unifor President Lana Payne says that the tariffs will soon affect more than just the auto industry.

Flavio Volpe, president of the Automotive Manufacturers Association posted on X saying that Canada avoiding reciprocal tariffs while still facing others is like, “dodging a bullet into the path of a tank.”

Canadians sighing with relief for not being on this list should remember we still have border tariffs of 25%, auto tariffs of 25% and steel and aluminum tariffs of 25%.

Like dodging a bullet into the path of a tank.

— Flavio Volpe, C.M. (@FlavioVolpe1) April 2, 2025

St. Catharines is home to the General Motors plant and Mayor Mat Siscoe says it’s business as usual as of right now, but any industry-wide tariffs will be damaging.

Siscoe says that mayors on both sides of the border are discussing how to handle these tariffs. 

Carney says Canada is going to fight these tariffs with countermeasures.

So far, Canada has already announced $60 billion worth in retaliatory tariffs. 

Those have been in place since last month, but Canada could still impose another $125 billion worth of tariffs on U.S. imports.

Carney says the U.S. has signalled that there are still more tariffs to come in so called “strategic sectors” including pharmaceuticals, lumber and semi-conductors.

WATCH MORE: Trump’s painful new tariff rollout set to impact global trade