The Global Automakers of Canada, an association that brings together 16 of the world's biggest automakers and representing over 26 brands on the Canadian market, made a rather clear statement last Friday regarding the situation with American auto tariffs. A situation that has still not been resolved despite a deadline that was set for August 1.
David Adams, President and CEO of Global Automakers of Canada (GAC), stated that it was “unfortunate that a deal has yet to be reached, leaving the situation unchanged for Canada’s auto sector.”
He added that the tariffs imposed earlier this year “have long-term consequences for Canada’s auto sector, which is the second-largest export industry in Canada and directly or indirectly affects half a million jobs. It means that Canadian manufacturing is that much more uncompetitive with respect to the U.S. and that businesses investing here face significant uncertainty.”
He thus calls on the two governments to reach an agreement:
“We need parties to stay at the negotiating table. This isn’t just about getting a deal – it’s about getting a deal that is good for Canada, good for automakers, and good for the jobs they support on both sides of the border. The United States and Canada aren’t just each other’s largest trading partners, but we actually build things together, not for each other. Nowhere is this more evident than in the auto sector, which has enjoyed sectoral free trade between our two countries since 1965.
Our members believe in Canada. They account for 70 per cent of our country’s vehicle production and exports. They’ve operated here for over 40 years without a single layoff. They want to be here. Tariffs make things difficult.”
• David Adams, President and CEO of GAC
We have begun to see the impacts of the tariffs on model prices and on the industry in general. If the tariffs remain in place, the situation will only worsen in the second half of the year.