Auto tariffs stoke layoff angst in Canada's once-proud Motor City
An hour from Toronto, downtown Oshawa seems to exude the vibe of a pleasant small town. But signs of economic stress are multiplying in the place that once fashioned itself as Canada's motor city.
Article content
Lines form early outside the food bank on Simcoe Street where customers load strollers with pasta and bags of bread. Homeless encampments dot the river trail. Inside local food joints like Ciao Amici, a lunch stop serving Italian specialties, conversations drift toward layoffs. On that front, there's a lot to talk about.
Article content
Article content
Article content
Unemployment has surged in Oshawa and now tops 9%, one of the highest rates of any Canadian city. In May, shortly after US President Donald Trump imposed tariffs on automobiles, General Motors Co. said it planned to reduce output at the only Canadian assembly plant it owns that builds pickup trucks. The move affects some 700 jobs at the factory. Many more people will feel the ripple effects.
Article content
Article content
As the Trump administration tries to pull more automotive jobs into the US, Oshawa's reckoning is a warning to other manufacturing cities.
Article content
What's jarring for the residents of Oshawa is that, not so long ago, the city was on the way back. That GM assembly line near the shore of Lake Ontario died once, when the automaker closed it at the end of 2019. Then the Covid pandemic hit, demand for vehicles surged — and GM made the surprising decision to reopen the old plant.
Last year, about 150,000 Chevrolet Silverados were built here, according to the Automotive News Research & Data Center — many of them destined for dealers' lots in the US. That's the norm for Canadian auto assembly plants, which export most of what they build. But it's a two-way street. Walk around a Ford or GM or Chrysler dealership in Toronto or Vancouver or Calgary, and you will find more US-manufactured models for sale than Canadian ones.
Article content
Canada, which has roughly one-eighth the population of the US, is the largest foreign buyer of American-made cars and light trucks. When parts are included, the US runs a trade surplus in automotive with Canada — a product of decades of tight integration between the countries. That system, however, doesn't fit within Trump's vision for the sector or for trade. In March, he reiterated his threat to use tariffs to 'permanently shut down the automobile manufacturing business in Canada. Those cars can easily be made in the USA!'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Winnipeg Free Press
13 minutes ago
- Winnipeg Free Press
OPEC+ countries to boost oil production by 547,000 barrels per day
NEW YORK (AP) — A group of countries that are part of the OPEC+ alliance of oil-exporting countries has agreed to boost oil production, a move some believe could lower oil and gasoline prices, citing a steady global economic outlook and low oil inventories. The group met virtually on Sunday and announced that eight of its member countries would increase oil production by 547,000 barrels per day in September. The countries boosting output, including Saudi Arabia, Russia, Iraq, United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman, had been participating in voluntary production cuts, initially made in November 2023, which were scheduled to be phased out by September 2026. The announcement means the voluntary production cuts will end ahead of schedule. The move follows an OPEC+ decision in July to boost production by 548,000 barrels per day in August. OPEC said the production adjustments may be paused or reversed as market conditions evolve. When production increases, oil and gasoline prices may fall. But Brent crude oil, which is considered a global benchmark, has been trading near $70 per barrel, which could be due to a potential loss of Russian oil on the market and a large rise in crude inventories in China, according to research firm Clearview Energy Partners. Monday Mornings The latest local business news and a lookahead to the coming week. 'President Trump has not obviously relented from his threat to sanction Russian energy if the Kremlin does not reach a peace deal with Ukraine as of August 7, potentially via 'secondary tariffs' on buyers,' Clearview Energy Partners said in an analyst note Sunday. The eight countries will meet again on Sept. 7, OPEC said in a news release.
Canada News.Net
35 minutes ago
- Canada News.Net
US, European stock markets tumble on Trump's tariff move; Amazon & Apple shares face heavy selling
New Delhi [India], August 2 (ANI): US stock markets faced heavy selling pressure on Friday (local US time) after President Donald Trump implemented fresh reciprocal tariffs on 70 countries, including India. The new tariffs have raised fears of rising inflation in the US, as imports will become more expensive and prices of goods sold in the country are expected to rise in the coming months. The major US stock indices witnessed sharp declines. The Dow Jones Industrial Average fell by over 1.2 per cent to close at 43,588.58, down by 542.40 points. The S&P 500 also dropped by 1.6 per cent, losing 101 points to settle at 6,238. The tech-heavy Nasdaq index tanked more than 2.2 per cent, falling by 472 points to close at 20,650. Several major US companies saw their share prices tumble. Amazon Inc. shares on the Nasdaq declined sharply by 8.27 per cent. Shares of tech giant Apple also dropped by 2.5 per cent, reflecting broad-based selling across the technology sector. In a major development, President Trump abruptly fired Dr. Erika McEntarfer, the head of the Bureau of Labor Statistics (BLS). Trump accused her of releasing 'fake' jobs data ahead of the 2024 US Presidential Election in an attempt to support Vice President Kamala Harris. In a social media post, Trump said, 'I was just informed that our Country's 'Jobs Numbers' are being produced by a Biden Appointee, Dr. Erika McEntarfer, the Commissioner of Labor Statistics, who faked the Jobs Numbers before the Election to try and boost Kamala's chances of Victory. This is the same Bureau of Labor Statistics that overstated the Jobs Growth in March 2024 by approximately 818,000 and, then again, right before the 2024 Presidential Election, in August and September, by 112,000.' Trump added, 'These were Records -- No one can be that wrong? We need accurate Jobs Numbers. I have directed my Team to fire this Biden Political Appointee, IMMEDIATELY. She will be replaced with someone much more competent and qualified.' The panic in global markets extended to Europe as well. Germany's DAX index dropped by more than 2.7 per cent, while France's CAC index fell by 2.99 per cent, showing heavy selling pressure across European markets too. Investors remain concerned over the uncertainty triggered by Trump's tariff move and the possible economic consequences it could bring. (ANI)
Canada News.Net
35 minutes ago
- Canada News.Net
Partnership with the US has weathered several challenges, says MEA after Trump's 25 pc tariff on India; expresses confidence of ties moving forward
New Delhi [India], August 1 (ANI): India on Friday expressed confidence that its relationship with the United States will continue to move forward and it remains focused on the substantive agenda the two countries are committed to. Ministry of External Affairs spokesperson Randhir Jaiswal said at the regular media briefing that the bilateral partnership with the United States has weathered several transitions and challenges and the two countries share a comprehensive global strategic partnership. Jaiswal's remarks came in response to questions on way forward for bilateral ties with the United States after US President Donald Trump decided to impose a 25 per cent tariff on Indian goods and a penalty for importing oil from Russia. Responding to a volley of questions on Trump's decision, Jaiswal said the government has already made a statement on the issue. 'India and the United States share a comprehensive global strategic partnership anchored in shared interests, democratic values, and robust people-to-people ties. This partnership has weathered several transitions and challenges. We remain focused on the substantive agenda that our two countries have committed to and are confident that the relationship will continue to move forward,' he said. Asked about media reports that some Indian oil companies have stopped taking oil from Russia, Jaiswal said India has made clear its approach on the issue. 'You are aware of our broad approach to energy sourcing requirements, that we look at what is available in the market and the prevailing global situation. We are not aware of any specifics,' he said. On the US announcing sanctions on Indian companies involved in trading with Iran, Jaiswal said 'We have taken note of the sanctions, we are looking into it.' Jaiswal declined to comment on Trump's remarks that India may purchase oil from Pakistan one day. 'I have no comments to offer in this matter,' he said. The government told the Parliament on Thursday that US President Donald Trump has announced a reciprocal tariff on Indian goods, and it is examining the impact of the recent events and will take all necessary steps to safeguard national interest. Commerce and Industry Minister Piyush Goyal made a statement in the lower House of Parliament a day after Trump announced the tariff. He later made similar statement in the Rajya Sabha. Goyal's remarks came a day after the government issued a statement on the US decision to impose tariffs. On Wednesday, Trump announced the imposition of 25 per cent tariffs on Indian goods and a penalty for importing Russian oil, even as there were hopes of an interim India-US trade that would have otherwise helped avoid elevated tariffs. Goyal said the Ministry of Commerce and Industry is holding talks with exporters, industries and all stakeholders and gathering information on their assessment of this issue. 'On April 2, 2025, the US President issued an executive order on reciprocal per cent baseline duty in effect since April 2025. With a 10% baseline tariff, a total of 26% tariff was announced for India. Full country-specific additional tariff was scheduled to come into effect on April 9 but on April 10 this was extended initially for 90 days and then extended till August 1 2025,' Goyal said. 'Government gives utmost priority to the safeguarding of welfare of farmers, labourers, entrepreneurs, industrialists, exporters, MSMEs and stakeholders of the industrial sector. We will take all necessary steps to safeguard our national interest. The Government is confident that we will continue our swift journey of inclusive and consistent development towards the goal of Viksit Bharat 2047. Aatmanirbharta ki ore Bharat aatmavishwas se badh raha hai,' he added. The Union Minister said that in less than a decade, India came out of the 'Fragile Five' economies and it has now become the fastest-growing economy in the world. 'On the basis of the hard work of reforms, farmers, MSMEs and industrialists, we have come in the top five economies of the world from the 11th largest economy. It is expected that we will be the third-largest economy in a few years. Today, global institutions and economists see India as a bright spot in the global economy,' he said. Goyal said India and the US started talks for a just, balanced and mutually beneficial Bilateral Trade Agreement (BTA) in March this year, and the goal of this was to finish the first stage of the Agreement by October-November 2025. On April 2, 2025, President Trump signed an executive order for reciprocal tariffs on various trade partners, imposing varied tariffs in the range of 10-50 per cent. He subsequently kept the tariffs in abeyance for 90 days, while imposing a 10 per cent baseline tariff. The deadline was to end on July 9, and the US administration later pushed it ahead to August 1. In March 2025, India and the US initiated talks for a BTA, with the countries stating that the first tranche would be signed by the fall of 2025. (October-November).Talks took place in New Delhi and the US, and there have also been virtual its statement on Wednesday, Commerce and Industry Ministry said that it as taken note of a statement by the US President on bilateral trade and the Government is studying its implications. 'India and the US have been engaged in negotiations on concluding a fair, balanced and mutually beneficial bilateral trade agreement over the last few months. We remain committed to that objective. The Government attaches the utmost importance to protecting and promoting the welfare of our farmers, entrepreneurs, and MSMEs,' the statement said.'The Government will take all steps necessary to secure our national interest, as has been the case with other trade agreements including the latest Comprehensive Economic and Trade Agreement with the UK,' it added. There were some reservations from the Indian side on the US demand for opening up the agricultural and dairy sectors for the US. Agriculture and dairy are critical for India as these two sectors provide livelihood opportunities to a large section of its President Donald Trump had imposed reciprocal tariffs on dozens of countries with which the US has a trade deficit. Since assuming office for his second term, President Trump has reiterated his stance on tariff reciprocity, emphasising that the United States will match tariffs imposed by other countries, including India, to 'ensure fair trade'. (ANI)
