U.S., Canada enter final hours of auto tariff talks

Two in five exporters sell products that would be hit by the proposed U.S. tariff, with more than three-quarters of those firms expecting revenue declines, the Canadian Federation of Independent Business (CFIB) previously noted. 

Industry warns of profitability threshold

Greig Mordue, an associate professor at McMaster University and former Toyota Canada general manager, told the Globe that a 15% tariff on non-U.S. content translates to an effective rate of roughly 7% to 8%, comparable to the labor cost of building a vehicle. 

“Over the longer term, the assembly plants will suffer and eventually disappear,” he said, according to the report from The Globe. 

Plant closures are already under way. Unifor has said Stellantis NV is in talks to sell its Brampton, Ont. plant, idle since 2023 with about 2,200 workers on layoff. General Motors closed its Ingersoll, Ont. electric-van plant last year, and Ford idled its Oakville, Ont. facility in 2024, according to the report.

Labour sharpens its position

Lana Payne, national president of Unifor, said Friday that Canada should hold firm. “We shouldn’t be offering any concessions to the United States right now,” she said, warning that without a deal by Aug. 19, “there is only one path for Canada… and that is to retaliate,” according to The Globe.