Canada’s auto sector is hoping for the tariff reprieve Mexico has secured as it faces a potential shutdown from the added border tax.
Flavio Volpe, head of the Automotive Parts Manufacturers’ Association, says he’s hoping Prime Minister Justin Trudeau can secure a delay on tariffs on a scheduled call with U.S. President Donald Trump.
He says the auto sector will likely shut down in a week or so if the 25 percent tariffs go into force on Tuesday as Trump has ordered.
Sam Fiorani, an automotive expert at AutoForecast Solutions LLC, says the few days between when Trump confirmed the tariffs and when they’re coming into force means automakers have had little time to stock up on inventory.
He says automakers Honda and Toyota would be especially affected as they sell some of their most popular SUVs into the U.S. market from their Canadian operations, while parts suppliers would also be seriously hit.
Fiorani says automakers in general are hoping to see tariff relief but have been doing what they can to prepare for the worst.
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