By Global Desklast Updated
APCanadian Prime Minister meets with Ford, GM, and Stellantis leaders as US tariffs threaten thousands of auto jobs and reignite cross-border trade tensions
Canadian Prime Minister Mark Carney convened a high-stakes meeting on Wednesday(July 2) with CEOs from Ford Canada, GM Canada, Stellantis Canada, and Brian Kingston of the Canadian Vehicle Manufacturers鈥 Association. The attendees gathered at the Prime Minister鈥檚 Office to address the impact of renewed 25 percent US tariffs on Canadian-built vehicles and draw up plans to protect Canadian supply chains, at a time when trade talks with the United States are heating up again.The faces behind the numbersLine workers in Windsor, Ontario, and Oakville understand these tariffs as more than just economic data; they represent family paychecks, local businesses, and community identity. Canada responded to US auto, steel, and aluminum tariffs in April with matching 25 percent retaliatory tariffs on US vehicles, sparing parts to preserve integrated North American supply chains. A $2 billion 鈥渟trategic response fund鈥 was also created to help affected workers Live EventsDropping EV sales compound the pressureAutomakers face added strain from declining EV demand. April鈥檚 data from Statistics Canada showed EVs made up only 7.5 percent of new sales, a sharp decline from record highs of 18.29 percent in December 2024. David Adams, CEO of Global Automakers of Canada, warned bluntly:鈥淭here鈥檚 no way that manufacturers are going to be able to meet their targets for 2026.鈥 Canada鈥檚 zero-emission vehicle mandate requires 20 percent EVs by 2026, rising to 100 percent by 2035.Trade brinkmanship and revivalThe trade talks had stalled late in June after Canada introduced a 3 percent digital services tax on large US tech companies. President Trump branded it a 鈥渂latant attack鈥 and froze trade negotiations. But Canada withdrew the tax on June 30, prompting the restoration of talks and a firm July 21 deadline to finalize a new Canada鈥揢S economic and security agreement Carney emphasized the need for a 鈥渕ade鈥慽n鈥慍anada supply chain鈥 and greater trade partner diversification, redesigning economic policy 鈥渢o maximize US impact while minimizing harm at home鈥. But the automakers say the immediate pressures from steep tariffs to EV mandates are pushing their production models to the brink.Why this matters in the USAcross-the-border effects: Tariff turbulence could increase vehicle prices in both countries.Shared industry risks: The auto supply chain spans the border, shutdowns in Canada ripple into US parts plants and dealerships.Calendar pressure: With just over two weeks until the July 21 deadline, failure to strike a deal risks escalating tariffs and retaliatory moves.(You can now subscribe to our Economic Times WhatsApp channel)
Read More News onFord CanadaGM CanadaStellantis CanadaUS tariffsCanadian auto tradeEV sales declineDonald TrumpMark Carneydigital services taxcanada
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(You can now subscribe to our Economic Times WhatsApp channel)Read More News onFord CanadaGM CanadaStellantis CanadaUS tariffsCanadian auto tradeEV sales declineDonald TrumpMark Carneydigital services taxcanada(Catch all the Business News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online….moreless
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