Prices: “Everyone is disappointed, but no one is surprised”

The reactions are much more measured than at the beginning of the year after a new advertising customs advertising of 35 % that could strike Canada on August 1.

Everyone is disappointed, but no one is surprisedsummarizes Daniel Tisch, president of the Ontario Chamber of Commerce.

This is not the first time that Donald Trump has announced important customs duties and all threats have not been followed up. Business people therefore argue patience, calm and the continuation of negotiations for a trade agreement, for which the date of July 21 has already been advanced.

Particularly integrated with the United States, the Canadian automotive industry is among the most exposed to a tariff climbing.

Additional uncertainty

This is another layer of uncertainty, when it had the impression that we were in a positive pathadvance Charles Bernard, principal economist for the corporation of associations of car retailers. Nevertheless, You have to take seriously These new declarations, he judges.

In this showdown, he salutes the reaction of Prime Minister Mark Carney who makes minimalist answers at each blow of the American president, rather than responding head on.

Responding to the same level of intensity, it was not a long -term lasting situationhe underlines. Even if he understands that it’s frustratingespecially for the public.

Daniel Tisch notes that Canadian exports to the United States have already increased from 75 % to 68 % of the total, for the benefit of other markets, in particular the United Kingdom.

He believes that most countries are trying to do not ignite the situation.

According to a survey of the Ontario Chamber of Commerce, Only 6 % of companies in Ontario will consider relocating in the United Statescar It is not a conducive environmentdue to permanent changes.

A notable drop in automotive production

Despite these reassuring remarks, Flavio Volpe, president of the Association of Manufacturers of Automobiles of Canada, already notes a slowdown in activity in Ontario (see box).

He greets that the prices on car parts have not been set up in the spring, but stresses that it still exists on vehicles assembled in Canada, which reduces current production from 25 to 30 %.

He does not believe in factory moves, too expensivebut judges that risk is a reduction in Canadian production to the United States, which will impact American companies, which no one understands.

Despite these confusing reversals, Fen Hampson, international business professor at Carleton University and co-president of his group of experts on Canadian-American relations, notes a change of state of mind among Canadian leaders.

The question is no longer whether there will be prices, but at what levelhe believes. Which was not the case a few months ago.

With information from Andréane Williams and Lorenda Reddekopp