Stock Market News for Investors: Dollarama Finish, Stellantis suspended, clothing stock diving as U.S. tariffs imposed
High tariffs have fallen into the highly integrated automotive industry, built on the North American free trade.
Automakers still have some probation because of vehicle tariffs in compliance with the Canadian-US-Mexico Free Trade Agreement. But that’s only before the United States decides how to just exempt the value of American parts in the vehicle.
Other automakers in Canada are also struggling with how to deal with disruptive developments, but some are pushing for production.
Honda Canada confirms its Alliston, Ont. Plant, the plant employs more than 4,000 workers and produces about 400,000 citizens and CR-VS each year.
“We are working with North American manufacturing, parts, trade and logistics providers to understand the impact of the announced U.S. tariffs, and we will adopt a measured, thoughtful approach to actively addressing immediate and future impacts,” spokesperson Ken Chiu said.
Toyota Canada manufactures approximately 350,000 RAV4s and 110,000 Lexus crossovers at its factories in Cambridge and Woodstock, Ontario, which also confirms that production has not been affected yet.
“While this is still a smooth situation, we have no plans to change production in the foreseeable future. We have high demand for vehicles and we will continue to plan,” spokesman Philippe Crowe said in a statement.
“At the same time, we will continue to work with federal and provincial governments to achieve sustainable solutions.”
Other automakers, including Ford and General Motors, did not immediately respond to requests for comment.
Flavio Volpe, president of the Auto Parts Manufacturers Association, said the tariffs would force many other auto factories to close shortly after Trump confirmed that he would continue to use automatic tariffs.
Walp said Canada avoided mutual tariffs while still being subject to automobile and metal tariffs, like “hiding bullets in the road to tanks.”
Unifor state President Lana Payne said in a statement that Trump is clearly trying to pick the Canadian industry one by one.
“The reality is that this trade war is just beginning and Canada still feels the pain of U.S. trade penalties are worse than any country in the world. That’s why Canada needs the biggest reaction to these tariffs as we work to build a more resilient Canadian economy.”
