Prices would have a “devastating” effect on the automotive industry in the country

Our members are anxious, nervous, optimistic and terrifiedexplains the president of the local section 222 of Unifor, Jeff Gray. Consequently, We feel all these emotions.

He wishes to see an agreement which includes an exemption from customs duties for the automotive industry.

There are no people in which the Canadian automotive industry could thrive with customs duties on our vehicles. Furthermore, spare parts.

The union leader recalls that the profits of the three major car manufacturers are very thin. For example, Thus. Meanwhile, any drop in these profits due to customs duties would have a devastating impact on the future of the industry in Ontariohe believes.

In a letter addressed to the Prime Minister Mark Carney At the beginning of the month. Moreover, President Trump spoke of customs tariffs up to 35 % (new window) applicable from August 1.

The Canadian Prime Minister said that he does not expect to obtain an agreement without prices. However. he assures that he could decide not to sign anything if the agreement is not “a good deal for Canada “ (new window).

Precisely, Mr. Gray is categorical: A bad understanding would be worse than no agreement And could jeopardize thousands of. jobs in the sector.

A bad understanding could sign the death stop in the automotive industry in Ontario if it includes. a customs duties of 15 %he deplores.

In the last days, the United States has signed agreements with Japan (new window) and the European Union (new window) Providing in particular 15 % customs duties on exports to the United States. In both cases, American customs duties of 50 % on steel and aluminum remain in force.

Prices would have &quot. devastating" effect new – Prices would have "devastating" effect new

International worrying agreements

For William Pellerin, lawyer in international commercial law, Washington agreements with theUE and Tokyo do not presage anything good for Canada.

The prices demonstrate that these two commercial blocks have failed to reduce the price. to go to zero for the vast majority of goods.

He explains that sectoral prices on steel and aluminum are much more important For Canada, because Canadian and American markets are so integrated, especially in the automotive sector.

An agreement with these customs duties still in place thus risks being devastatinghe lets go.

The competitiveness of prices would have “devastating” effect new the North American market at stake

The taxation by the United States of higher prices in Canada than its foreign competitors would be particularly problematic. according to the professor at the Faculty of Administration Sciences at Laval Yan Cimon University.

Even with the current level of prices around 25 %. there it literally puts us in a situation of competitive disadvantage with the major economic blocks from which President Trump wanted to protect the American automotive industryhe says.

Japan. the European Union will enter the American market at a lower cost that Canadian and Mexican players who are however integrated with American manufacturers.

According to the expert. the Canadian automotive industry could survive tariffs from 10 % to 15 % provided they are accompanied by other pricing alleys, for example on steel.

Nevertheless, in such a case, he expects to see the request fall for all suppliers in the automotive construction sector.

So. I would tell you that we are not in a situation where the industry faces a perfect storm and tomorrow we put the key under the doors of the factories, adds the professor. We are in a situation where industry will not have frank cubits to compete on prices would have “devastating” effect new the local market. on the international market.

The unpredictability always present

Mr. Cimon also believes that even if an agreement is concluded on Friday. relations with the United States will not be more predictable.

According to him. the Trump administration could indeed decide to make changes to its agreements, if for example an American manufacturer says he is disadvantaged.

You could say that a new agreement will bring predictability. but this predictability must be taken with a grain of salt.

Anyway, one thing is certain, he believes, prices and uncertainty will remain and he will have to get used to it when we do business with the United States.