Canada is considering all options, including providing financial aid to the auto industry, to cope with possible U.S. tariffs, a senior federal minister said, even as officials expressed doubt Washington would follow through with a threat to impose the punitive measures.
This story by David Ljunggren appeared in Automotive News Canada.
President Donald Trump last month said he might impose tariffs of up to 25 percent on foreign-built automobiles, which could cause major economic damage to Canada and a heavily integrated North American industry.
After Trump slapped tariffs on Canadian steel and aluminum on May 31, government ministers promised to support the sectors, and Innovation Minister Navdeep Bains told Reuters the same kind of aid could be ready for the auto industry.
“We’re examining all options … our view is that if any such action is taken, we’re going to support our workers,” he said in an interview last week. “The message I would convey to the auto sector workers is – we have your backs.”
The bill could run into billions of dollars, depending on the extent of government support for the industry, which represents about 500,000 direct and indirect jobs and contributes around $80 billion to the economy a year.
