Trade war truce? Not so fast. Trump has Canada’s auto sector in his sights

MT HANNACH
9 Min Read
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A trade war, two to go – maybe more. US President Donald Trump recalled his prices against Canada after making market economics vibrate at factories, borders.

But it was the battle for this week.

There is another next week when its steel and aluminum prices take effect; Then, three additional weeks after that, when Trump threatens other prices on a multitude of countries.

Private and public comments in recent days of the Trump team are making fun of the idea that fentanyl was the main reason for its pricing policy.

The biggest risk for Canada is now to focus. And this is bad news if you are one of the hundreds of thousands Canadians with employment linked to the automotive sector. His goal may be you.

In a closed conversation, Trump team members have pushed automotive companies in recent days to considerably reduce their long -term footprints in Canada and Mexico in exchange for permanent prices relief – without success so far, according to three sources related to industry, which spoke provided they are not named.

Look | The prices are again delayed:

Trump break prices for 1 month on certain Canadian and Mexican products

US President Donald Trump said on Thursday that he stopped his prices on some goods from Canada and Mexico, which come from the Automobile Canada-American on April 2.

The Trump team went almost far in public.

His press secretary Karoline Leavitt, asked his message to automobile companies fearing prices that are due in April, said: “Shift production here”.

The commercial secretary, Howard Lungick, on Fox News, made the same point:

“Why is our Michigan [auto] Jobs in Canada? “He asked.”[Trump’s] I’ll say, “Go back. Come back. ‘”

Trump himself described the conversations he had had this week with the three major American car manufacturers, saying that he had promised a brief stay of the previous prices and so-called fentanyl to allow them to plan.

But he warned that there would be no exemption from future prices.

Production at General Motors Camotive Facility in Ingersoll, Ontario.
A car is assembled in the installation of General Motors in Ingersoll, Ontario, in December 2006. Most Canadian manufacturing vehicles are exported to the United States, and Canada sells more vehicles than it buys. (Dave Chidley / The Canadian Press)

“I said to them:” That’s it. It was a short -term agreement “,” said Trump on Thursday, when he signed an order in the Oval Office, withdrawing from his initial price salvo.

“I said …” Do not come back to me after April 2 “,” said Trump about car manufacturers. “‘I don’t want to hear from you after April 2.” “”

Most Canadian manufacturing vehicles are exported In the United States and Canada sells more vehicles it does not buy. But industry is not a one-way street: Canada is the largest buyer of cars made in the United States, and the parts grow the border.

What is going then

Trump is now threatening two -phase rates.

First of all, there is a 25% to come next week next week steel And aluminumAnd the automotive industry will result in small characters for exemptions, because these metals are their main components. Without exemptions, vehicles will face punishing price increases.

Then he plans prices on the countries of the world He ordered his team To prepare, which are due on April 1.

A row of dairy cows eating hay in a barn
Trump complained about everything from the Protected Davail Sector in Canada, to Banking at TPS. (Shane Hennessey / CBC)

Trump clearly said on Thursday that he considered Canada as the main targets. He is preparing for a murderous renegotiation of the Canada-UX-Mexico agreement. By law, this must occur during the next decade, but is now expected on an accelerated calendar.

Trump complained about everything from the Protected Davail Sector in Canada, to Banking at TPS. Dairy products have come frequently in a time and Telephone call slipped by blasphemies this week with Prime Minister Justin Trudeau.

Will Trump come back again?

He swears that he was not frightened this week by the Red Red River on commercial screens, representing losses on the stock market.

“I don’t even look at the market,” said Trump.

Look | A “colorful” conversation:

Trudeau says that the call with Trump on prices was “colorful” but also “substantial”

Prime Minister Justin Trudeau, speaking Thursday during a childcare announcement in Ottawa, was invited to describe his recent appeal with US President Donald Trump on prices. Trudeau, who has not provided details, said that conversations are underway and reiterated that Canada focuses on how to help people to face while the samples are in place.

What the chaos looks like

The market, however, examined the economy. And it becomes disorderly there. Customs brokers had a unique point of view in the impact of the real world.

Jesse Mitchell, director of business development based in Ottawa for Strader -Ferris International, who works with hundreds of cross -border companies, says that companies were hanging with unexpected invoices – $ 50,000, $ 75,000 and $ 100,000; Some because their expeditions reached the border later than expected, after midnight on Tuesday, when the prices began.

In other cases, they did not know that they should have a price. For example, Mitchell cited a Canadian company that fixes heavy machines.

He said that the company would import the engine, would charge $ 50,000 for repairs and returns it to the United States – and only realized that they should pay an additional 25% of this invoice to return it through the border.

Canadian companies had no choice. Many paid the price, he said, to avoid losing his American customer.

Faced with this, says Mitchell, the companies on both sides held expeditions – assuming, hoping, that Trump would back up quickly.

He has, to a certain extent. Trump has abandoned the prices on goods deemed in accordance with the Canada-American-Mexico agreement, which does not cover disputed areas such as wood, dairy products and certain other products. Even there, the details are not clear.

“It causes headache for everyone – certainly in Canada but also probably in the United States,” said Mitchell.

Seeing the chaos approaching, the companies rushed to send goods before Tuesday.

Exports of goods to the United States has skyrocketed from November to January, a trend that the Banque de Montréal linked Thursday at the prices, as well as the huard beaten.

The Canadian Chamber of Commerce said Thursday’s stay would reduce certain damage. But not almost everything.

“It is not a moment to celebrate. The economy is not a toy with whom to play,” said Matthew Holmes, vice-president of the room, in a statement.

“Constant threats and economic uncertainty have wreaked havoc. We see it in delayed commercial investments, the confidence of fragile consumers, dead capital flows and a volatile stock market. The livelihoods of people are at stake.”

For Canada, these livelihoods exist in many sectors. Tens of thousands of steel workers from Canada can feel it next week, not to mention the much larger automotive sector.

The economy may not be a game. But the workers will be forced to play it – round, after the Tour, after the Tour.

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