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Will U.S. Tariffs on Canadian Imports Be Pushed Back to March 1 ... Or Not?

Toyota's South Plant in Cambridge, Ontario | Photo: Toyota
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Daniel Rufiange
As the contradictory reports fly, the auto industry waits to see what foot to stand on.

On Friday afternoon, there is still complete uncertainty regarding the threatened 25-percent U.S. tariffs on imported Canadian goods, set to take effect tomorrow, February 1.

Reuters today reported that the deadline has been pushed back to March 1, quoting three inside sources. But at 1:15pm on Friday, White House spokesperson Caroline Leavitt announced that the tariffs were still scheduled to take effect tomorrow.

Given the unpredictable nature of what's happening in Washington, anything is possible at this point.

According to Reuters, President Trump will provide a process for countries to request specific exemptions for certain imports. The agency’s sources, who asked not to be identified as they are not authorized to speak publicly on the subject, said they had no details on the final tariff rate, but noted that Trump has consistently said he plans to impose a 25 percent tariff on imports from both countries as early as Saturday (February 1).

Auto industry stakeholders will surely breathe a sigh of relief if the tariffs are postponed. The sector is likely to be severely impacted by any tariffs, to the point where automotive production could be severely disrupted.

The Ambassador Bridge between Windsor, Ontario and Detroit, Michigan
The Ambassador Bridge between Windsor, Ontario and Detroit, Michigan | Photo: Wikimedia Commons

A vision for the industry
Linda Hasenfratz, president of manufacturing company Linamar, the second-largest auto parts supplier in Canada, said this week that the North American automotive industry will come to an almost immediate halt if the U.S. President goes ahead with imposing high tariffs on all products from Canada and Mexico.

“If, indeed, 10 or 25 percent is imposed, or, in my opinion, almost any tariff in terms of tariffs on auto parts that cross the border, I think we'll stop making vehicles in North America pretty quickly. Because nobody can absorb that kind of cost. I'd say it won't take more than a week for production to stop. You can't make a car if you don't have all the parts,” she told Automotive News.

Headquartered in Guelph, Ontario, Linamar operates 24 plants in Canada, 6 in Mexico and 17 in the United States. Said Hasenfratz, “some of its auto parts cross the border up to seven times before the vehicle they serve ends up in an owner's driveway.” In her view, tariffs will only increase the cost of finished vehicles.

Canadian authorities, meanwhile, say they are ready to react.

Ford's plant in Oakville, Ontario
Ford's plant in Oakville, Ontario | Photo: Ford
Daniel Rufiange
Daniel Rufiange
Automotive expert
  • Over 17 years' experience as an automotive journalist
  • More than 75 test drives in the past year
  • Participation in over 250 new vehicle launches in the presence of the brand's technical specialists