Carney meets with auto sector as Trump's trade war stretches on
The industry has been facing a 25 per cent tariff from the U.S. on the sector itself, as well as a 50 per cent duty on steel and aluminum, materials used in the manufacturing of vehicles.
However, there are exceptions for components produced in the U.S.
Carney will be meeting with representatives from the Canadian Vehicle Manufacturing Association, Ford Canada, Stellantis Canada and GM Canada during the talks on Wednesday.
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Steel and aluminum measures announced to counter U.S. tariffs
Brian Kingston, president and CEO of the Canadian Vehicle Manufacturing Association, told reporters in brief comments while heading into the meeting that electric vehicle mandates under current targets, as well as a range of other policies, are 'not sustainable.'
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U.S. President Donald Trump has claimed for months that the U.S. does not need any Canadian-made vehicles, and called on automakers to shift all production to the U.S.
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Canada has imposed retaliatory duties on the U.S.
Trump and Carney are currently negotiating a trade deal with a July 21 target date.
It's not known at this time how wide a scope a potential deal could cover.
What's the impact of the tariffs so far?
The impact has been felt in Canada, with a report released in April by Ontario's financial accountability officer stating the province — which houses a large part of Canada's auto industry — could enter a 'modest' recession due to the tariffs.
The report found the impact of those tariffs would slow Ontario's growth in 2025 and could lead to a modest recession this year, while remaining slow in 2026, though growth would return to just over one per cent.
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Rising unemployment numbers in April also indicated the impact tariffs were having on the economy.
Ontario saw the biggest loss in April, with 35,000 jobs lost, mostly in the manufacturing sector.
Global News reached out to various automakers and organizations that represent them, as well as Unifor, which represents autoworkers, to inquire how many jobs have been lost as a result of tariffs.
In statements to Global News, both Stellantis and General Motors said no job losses have occurred due to tariffs.
The Global Automakers of Canada, which represents Toyota and Honda, also said there have been no job losses at this time.
Ford, the Canadian Vehicle Manufacturers Association and Unifor did not respond by publication.
— with files from The Canadian Press
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