Canadian auto industry in dire straits: Union leaders and associations warn plants could shut down within weeks as Donald Trump’s tariffs take effect

US President Donald Trump's 25 per cent auto tariff has sent shockwaves through the stock market and industry bodies. Auto industry experts have warned that the newly announced duties could deal a body blow to Canada's already struggling car plants.

Canada leaders have termed the tariff as an attack on the country's export and vowed to take countermeasures. In Canada, auto manufacturing and auto parts are the country's second-biggest export by value.

Canada, Mexico, Japan, and South Korea account for about 75 per cent of U.S. vehicle imports. Beyond direct exports, Japanese and South Korean automakers also manufacture many of the vehicles in Mexico and Canada that ultimately land in the American market, leaving them particularly exposed to the tariffs.


While Canadian officials have been in close touch with their U.S. counterparts since Trump's election in November, Canada was given no advance warning or details of the president's announcement. "This is a direct attack," Mark Carney, the Canadian prime minister, said at a campaign stop.

In Canada, Carney had promised help for workers and auto-related industries if Trump did, in fact, go ahead with tariffs, including a 2 billion Canadian dollar ($1.4 billion) fund to reshape the sector for a future without the United States.

FAQs

Q1. Who is President of USA?
A1. President of USA is Donald Trump.

Q2. Which countries are America's biggest exporter?
A2. Canada, Mexico, Japan, and South Korea account for about 75 per cent of U.S. vehicle imports.