Long-term impact of tariffs on auto industry

John Boscariol, leader of the international trade and investment law group at McCarthy-Tetrault, explains the significant impact Trump's tariffs on the auto industry could have on the entire industry and supply chain between Canada and the U.S.

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[darpompie]

Moving factories from Canada to the US sounds all great and such but that's only looking at it from one side. Why would Canadians continue to buy expensive US cars if there is no benefit in it for them? As it stands the US auto market has a net positive when it comes to Canada. If you lose the Canadian market to sell your products, that factory that moved over means nothing.

[Thomas_Paine]

ORRRR you can buy them when they are 50% off in about 6 months when everything goes out of business and liquidations

[charitysong]

Canada is not being subsidized by the US regarding the trade imbalance, but the US has purchased goods and services from Canada in these amounts under the current trade agreement. Regarding the high tariffs on dairy, the US exported $1.03B in US dairy products to Canada in 2022/ $1.09B in 2023 and $1.14B in 2024 and didn't pay one cent in tariffs because the high tariff figures President Trump is quoting relates to an anti-dumping provision that protects Canadian dairy producers and would only come into effect should sale volumes of US dairy threaten the survival of Canadian producers. So far, US dairy exports to Canada have not triggered the anti-dumping tariff. Someone should tell the President. Canada sold oil to the US at deeply discounted prices. Canada prohibits the use of artificial growth hormones, like rBST, in dairy production, including in milk, unlike the US, where it permitted. My hope is that RFK will improve standards and make US dairy more acceptable to Canadians.

[smugdug]

I’m placing bets on both Magna and Algoma steel.

[Schnick]

Canada buys more autos than it builds, basically US auto manufacturers would have to give up 10-15% of their sales if Canada was cut out. Some are higher, Ford sells 700k F150's in the US and additionally another130K of them in Canada, that's almost 20% for one company for one vehicle built in Michigan. This would increase prices on both sides of the border and kill profits, obviously economies of scale the more you build the cheaper each unit costs or each unit is more profitable as you build more.

[siarung]

Bloomberg asked China 😅😅😅😅😅😅😅😅😅😅😅it's your buddy 😅😅😅😅😅

[ohayes]

What about all the idle factories that we already have and a lot of them shut down in the last couple of years so they could feasibly be brought back on line within a couple of months and not years, all these talking heads weren't screaming when we were losing factory's it was just business but now that Canada and Mexico may lose some factory's their freaking out because these manufacturers will lose the advantage of dirt cheap wages so I say let's strap in ride this bull and boo hoo to these talking heads and ceo's

[grantboucher]

US have mothballed auto factories that sit empty right now.. As models change new factory lines can appear in the south

[brucehoffman]

Funny I just herd that major of steel and aluminum most come in from China at way cheaper price then resold into states Trudeau game