The 25% tariffs Aluminum and aluminum announced Monday by the US president Donald Trump They will add to those of 25% on Mexican and Canadian goods already imposed, But in suspense for a monththe White House confirmed on Wednesday.
If the rates imposed on Canada and Mexico to encourage them to control illegal immigration and fentanyl traffic enter into force on March 1, steel and aluminum produced by the two countries will be taxed in total with 50% from the day 12 of that month, said the source.
While Canada prepares to face US tariffs About steel and aluminumPresident Donald Trump intensified tensions by suggesting a new massive tariff on vehicles made in Canada, which would range between 50 % and 100 %.
Trump’s words
In an interview with Fox News, Trump accused Canada of “stealing” the US automotive industry and warned that, if a commercial agreement is not reached, its administration will impose severe sanctions on Canadian car imports.
“If you look at Canada, they have a very large automotive industry. They stole it because our people were asleep behind the wheel,” Trump said. “If we do not reach an agreement with Canada, we will impose a great tariff on cars – it could be 50 % or 100 % – because we do not want their cars. We want to manufacture the cars in Detroit.”
The automotive sector of Canada and the US has been closely integrated since the 1960s, starting with the PACT car, followed by the NAFTA and subsequently the United-Mexico Straiss Agreement (Cusma). Industry experts warn that tariffs proposed by Trump could paralyze automotive production in North America, causing factor closures, loss of jobs and a strong increase in car prices for US consumers.
Flavio Volpe, president of the Association of Automotive Parties manufacturers, said that even a 25 % tariff would paralyze the industry in a week, while one of 50 % or 100 % would stop it completely. “Hundreds of suppliers and dozens of car manufacturers have been clear: They will not pay Trump’s overcharge. The industry would close immediately, “he said.
The supply chain, deeply interconnected, implies that the pieces cross the border several times before the final assembly. An interruption would be catastrophic, explained your Nguyen, economist at RSM Canada. “A tariff on cars made in Canada would be like cutting your nose to annoy your face,” he said. He added that replacing Canadian production in the US would require the construction of five or six new assembly plants, with an approximate cost of 50,000 million dollars and a period of a decade, an unrealistic scenario.
Economic repercussions could be serious. Brian Kingston, president of the Canadian Association of Vehicle Manufacturers, warned that tariffs could increase the price of cars for US consumers in at least $ 6,500 per unit, in addition to giving a competitive advantage to European and Asian manufacturers. Canada is the largest export market for American vehicles, with car exports to Canada that exceed those directed to China, Germany and Mexico combined.
Despite Trump’s claims that Canada “stole” the industry, experts argue otherwise. “The Canadian automotive sector developed together with the US, starting with Ford in 1904 and General Motors in 1908 in Oshawa,” Volpe explained. He stressed that the industry has always been a collaborative effort, benefiting both Detroit and Canada.
With the commercial negotiations on the horizon and the revaluation of the Cusma scheduled for 2026, Canada is working to deter Trump to impose tariffs that could seriously alter the automotive panorama of North America. The Minister of Finance, Dominic Leblanc, will meet with the nominated for the US Secretary of Commerce, Howard Lutnick, to address these concerns. However, with Trump reinforcing its protectionist position, the threat of a commercial war in the automotive sector remains high.
Source: Ambito
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