Auto sector bracing for ‘chaos’ amid Trump tariff threat
“Carmageddon” is how the Canadian Auto Parts Manufacturers’ Association describes the likely impact American automotive tariffs would have on the Canadian industry.
Economists, meanwhile, have been no less alarmist and far more specific in several recent reports on the fallout 10 per cent tariffs on parts and 25 per cent tariffs on completed vehicles coming into the United States would have on Canada.
Below, BNN Bloomberg breaks down the key figures from their findings.
Likely impact of U.S. auto tariffs
|2020||The year when the United States and most of its major trading partners – Canada included – would face recession as a result of a trade war sparked by auto tariffs||July 3 report by Scotiabank deputy chief economist Brett House|
|400,000||Reduction in the number of vehicles produced annually in Canada if American tariffs are applied to all foreign auto imports||July 4 report by CIBC’s Royce Mendes|
|900,000||Reduction in the number of vehicles produced annually in Canada if American tariffs are applied to just auto imports from Canada||July 4 report by CIBC’s Royce Mendes|
|160,000||Potential Canadian job losses from auto tariffs||June 18 report by TD Senior Economist Brian DePratto|
|15||Percentage depreciation the Canadian dollar could experience in the immediate aftermath of auto tariffs being imposed||June 18 report by TD Senior Economist Brian DePratto|
|8.9||Percentage decline in Canadian business investment||June 18 report by TD Senior Economist Brian DePratto|