May 19, 2020

Canada could lose up to one million vehicle exports from US auto tariffs

Automotive
trade
tariffs
zaymalz malz
1 min
Canada could lose up to one million vehicle exports from US auto tariffs

A new report from the Canadian Imperial Bank of Commerce (CIBC) has revealed that if the US implements a 25% tariff on vehicles imports, industry exports from Canada could fall by as much as 900,000 units annually.

The Trump administration has continued to threaten the imposition of such tariffs, alongside a 10% auto parts tariff, in the aim of bolstering the domestic manufacturing industry across the US.

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According to Toronto Dominion (TD) Bank, that similarly highlights the dangers of such tariffs, as many as 160,000 Canadian jobs could be lost as a result of this.

Currently, only 10% of the two million cars made in Canada are sold in Canada, outlining the importance of international markets to the Canadian auto industry.

Canada would then likely be forced into a corner where it might retaliate proportionally against the US in the aim of trying to raise domestic auto purchases within Canada, furthering the existing trade war between the two countries.

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