Ford's bold response to Trump's tariffs puts thousands of Canadian auto jobs and billions at risk
Ontario’s auto industry, the backbone of the province’s exports and a pillar of Canadian manufacturing, is facing unprecedented threats from escalating US tariffs and shifting trade policies, with thousands of jobs and billions in investment at stake, according to multiple industry and government sources.
Premier Doug Ford has taken a combative stance in response to US President Donald Trump’s tariff threats, launching a high-profile television ad featuring Ronald Reagan’s anti-tariff remarks.
Ford described the ad as a necessary move to defend Ontario’s interests, stating, “Our goal is to make sure that we get a fair deal, not a one-sided Donald Trump deal. And I’m focused on auto.”
The ad, which drew Trump’s ire and prompted him to halt trade talks and threaten an additional 10 percent tariff on Canadian goods, was intended to highlight the risks of protectionism to both sides of the border, as reported by Bloomberg.
The stakes are especially high for Ontario, where the auto sector supports about 125,000 direct jobs and accounts for $73bn in exports, with roughly 80 percent of production destined for the US market, according to the Canadian government.
Industry leaders warn that further tariffs could be “very damaging,” with Brian Kingston, CEO of the Canadian Vehicle Manufacturers’ Association, telling a federal committee that “an additional 10 percent will be billions of dollars in costs onto this sector and other Canadian sectors. So very damaging and hopefully we can find an off-ramp,” as reported by Global News.
Recent decisions by major automakers have intensified concerns.
Stellantis announced it would move Jeep Compass production from Ontario to Illinois, and General Motors ended BrightDrop van production in Ontario, resulting in more than 4,100 job losses.
In response, Canada’s Department of Finance sharply reduced tariff-free import quotas for both companies, citing their failure to meet commitments under Canada’s auto remission framework, as reported by Reuters.
Finance Minister François-Philippe Champagne criticized these moves as “unacceptable decisions” that contravene legal obligations to Canadian workers.
The uncertainty is compounded by a global shortage of automotive microchips, which has already led to production cuts at Honda’s Ontario plant and threatens to disrupt supply chains further, according to The Wall Street Journal.
Executives warn that the situation cannot be resolved simply by sourcing alternative supplies, as the chip shortage is tied to geopolitical disputes involving the Netherlands, China, and the US.
Industry voices stress that the best path forward is a stable, long-term trade agreement that removes tariffs on vehicles and components.
David Adams, president and CEO of Global Automakers of Canada, argued that “the best deal for Canada is a situation where we adhere to the rules that were negotiated under the previous CUSMA,” as reported by Global News.
As the landscape shifts, some business leaders urge a pragmatic approach.
Goldy Hyder, head of the Business Council of Canada, suggested focusing on protecting the parts sector, which employs more Canadians than vehicle assembly, and adapting to the new reality of US trade policy, as reported by CTV News.
