Tuesday Ticker: Let’s talk tariffs; U.S. tariffs on Canadian goods paused for 30 days

U.S. President Donald Trump's 25 percent tariffs on goods from Canada will be paused following a late-Monday called between the President and Prime Minister Trudeau. Canadian auto parts suppliers and manufacturers were worried that production may stop by the end of the week, which could have "devastating effects" on the overall supply chain.

Canada Usa Tariffs

Toronto, Ontario — In this weekly Tuesday Ticker, we take a closer look at the automotive sector’s opinions on the impending U.S. tariffs on Canadian goods, which were set to come into effect Feb. 4, but have now been paused for 30 days.

Let’s talk tariffs
U.S. President Donald Trump’s 25 percent tariffs on goods from Mexico, Canada and China were set to take effect Tuesday, Feb. 4, though a late-Monday call between the President and Canadian Prime Minister Justin Trudeau has paused the tariffs for 30 days. 

Canadian auto parts suppliers, manufacturers and other industry members were initially concerned that production could halt by the end of this week, having “devastating effects” on the overall supply chain.

“We supply a lot of big factories with auto parts. If [factories] can’t get parts, they will shut down, too,” said Mike Van Boekel, a Unifor union representative from General Motors’ CAMI plant in Ingersoll, Ont. “I could see pretty well every auto plant potentially closing in Canada within a week.

AutoForecast Solutions’ Sam Fiorani said any tariffs will translate to rising part and vehicle prices “very quickly.”

“Simple economics says that, when trade barriers are in play, the price of all related products will rise. It is this competition that holds prices down, but restricting products from any rival country or company encourages raising prices.”

A fact sheet obtained from the White House states tariffs are to stay in place until President Trump is satisfied Canada is taking enough action to cease illegal immigration into the U.S. as well as the flow of fentanyl. Canada’s federal government insists the country is responsible for less than one percent of fentanyl entering the United States.

As of 5:30 p.m. E.T. Monday, the Canadian dollar was $0.69 to US$1.00.
 

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