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Yahoo
28-03-2025
- Automotive
- Yahoo
Stick Vs. Carrot: Trump Hits U.S. Automakers With Threats While Canada Provides $2 Billion In Reassurance
The juxtaposition of statements made this month by U.S. President Donald Trump and Canadian Prime Minister Mark Carney could not prove themselves more different when it comes to their respective countries' automotive manufacturing industries. Following the institution of sweeping automotive import tariffs, which will almost certainly lead to massive inflation of new car prices in the U.S., Donald Trump threatened U.S. based automakers, saying the White House would "look unfavorably on" any car company raising prices due to tariffs. Meanwhile, in Ottawa, Carney promised to "protect workers from American tariffs" while creating higher-paying jobs and buildout of an "all-in-Canada auto manufacturing network." Trump wants protection for himself and his policies, while Carney wants protection for the Canadian workers. The message could not be clearer. On Thursday Ottawa promised to create what it is calling a "$2,000,000,000 Strategic Response Fund to boost the Canadian auto manufacturing sector, improve competitiveness and protect local manufacturing jobs. The fund is earmarked to fortify Canada's automotive supply chain "from raw materials to finished vehicles" and support upskilling Canadian workers. "There's no building without manufacturing, no manufacturing without strong workers, and no workers without strong unions," said Carney. "With today's announcement, we will protect workers from American tariffs, create higher-paying jobs, and build an all-in-Canada auto manufacturing network." He later responded to Trump's tariffs by saying "This is a very direct attack. We will defend our workers. We will defend our companies. We will defend our country." Read more: GM Hopes A Clutch Pedal Is Enough To Make Enthusiasts Buy EVs The U.S. auto industry is incredibly reliant on imported vehicles and components to survive. With these new 25 percent tariffs on all imported cars and major components, prices that consumers pay at dealerships will almost certainly balloon by a similar percentage. If imported cars increase in price, domestically-produced vehicles will no longer see downward pricing pressures from competition and will have room to increase pricing to increase profit margins. That's kind of basic macroeconomics stuff, right there. Without an enforced price ceiling, the Trump administration can expect automotive price inflation across the board, regardless of its threats. Around half of all new cars sold in the U.S. are imported from other countries, and of the 8 million-ish vehicles built here for domestic consumption, only about 40 percent of the components used to build them are domestically sourced. That averages out to about 80 percent of sold-in-America car components will be hit with a 25 percent import duty under the new scheme. If U.S. automakers are not given a helping hand from the federal government, as Canada is doing, it will continue to fall behind and become further disconnected from the rest of the world. These are two very different approaches to automotive market growth, and time will tell whether investing in workers or threatening them is more successful. Want more like this? Join the Jalopnik newsletter to get the latest auto news sent straight to your inbox... Read the original article on Jalopnik.
Yahoo
26-03-2025
- Automotive
- Yahoo
Carney: 'We will build a stronger auto industry'
Canadian Prime Minister Mark Carney spoke today from the Ambassador Bridge in Windsor, Ontario. During his speech, Carney emphasized the importance of Canada's automotive industry and announced a 'Strategic Response Fund' of CAD$2 billion ($1.4 billion USD) to bolster the Canadian auto industry and its supply chain in response to the U.S.'s April 2 auto tariffs. In his opening remarks, the newly appointed Prime Minister highlighted the significance of the Ambassador Bridge, noting that over a quarter of all Canada-U.S. trade—amounting to more than $400 million daily—passes through it. He warned that U.S. President Donald Trump's tariff threats and actions have strained relations between the two nations to unprecedented levels, stating, 'His trade war threatens to hurt hardworking Canadians—the people we care about.' Carney reiterated that his government will channel all revenue from Canada's retaliatory tariffs into supporting the workforce. He outlined several measures already in place: waiving the one-week insurance waiting period for workers, introducing a middle-class tax cut saving families up to CAD$825 annually, implementing $10-a-day childcare, and launching the Canadian Dental Care Plan. Focusing on the auto industry, the Prime Minister stressed that vehicles are Canada's second-most-exported product, directly supporting over 125,000 jobs and nearly 500,000 more indirectly. 'Canadian autoworkers don't just build vehicles; they build Canada,' Carney declared. He then unveiled the 'Strategic Response Fund,' a CAD$2 billion initiative to protect autoworkers' jobs from the impact of Trump's tariffs and strengthen the auto industry's supply chain. The former banker elaborated, 'Under our new plan, we will build an 'All-In Canada' network for auto manufacturing components. On average, an auto part crosses the border, often over that bridge, six times before assembly. In a trade war, that's a huge vulnerability.' Carney expressed his ambition to increase vehicle production in Canada, viewing it as both a shield against U.S. tariffs and an economic driver. He also pledged to accelerate growth in the critical minerals sector, referencing the 'First Mile Fund' established last Friday to connect mineral extraction sites to infrastructure. To streamline approvals, he announced a 'one-window approval process' to eliminate redundant federal requirements. Shifting to politics, Carney took aim at Conservative Party leader Pierre Poilievre, his election rival, echoing criticisms from a speech the previous day. He described Poilievre as negative, angry, and divisive, drawing a parallel to U.S. President Donald Trump: 'Someone who worships Donald Trump will kneel before him, not stand up to him.' Carney is campaigning as head of the Liberal Party against Poilievre's Conservatives in an election set to begin April 28. He concluded, 'We will build a stronger, more resilient auto industry. We will build Canada strong.' Related Articles Carney: 'We will build a stronger auto industry' China's vice premier raises 'solemn concerns' over tariffs in talks with US trade chief US Treasury's financial crimes unit won't require ownership reporting from US firms
Yahoo
26-03-2025
- Automotive
- Yahoo
Carney: 'We will build a stronger auto industry'
Canadian Prime Minister Mark Carney spoke today from the Ambassador Bridge in Windsor, Ontario. During his speech, Carney emphasized the importance of Canada's automotive industry and announced a 'Strategic Response Fund' of CAD$2 billion ($1.4 billion USD) to bolster the Canadian auto industry and its supply chain in response to the U.S.'s April 2 auto tariffs. In his opening remarks, the newly appointed Prime Minister highlighted the significance of the Ambassador Bridge, noting that over a quarter of all Canada-U.S. trade—amounting to more than $400 million daily—passes through it. He warned that U.S. President Donald Trump's tariff threats and actions have strained relations between the two nations to unprecedented levels, stating, 'His trade war threatens to hurt hardworking Canadians—the people we care about.' Carney reiterated that his government will channel all revenue from Canada's retaliatory tariffs into supporting the workforce. He outlined several measures already in place: waiving the one-week insurance waiting period for workers, introducing a middle-class tax cut saving families up to CAD$825 annually, implementing $10-a-day childcare, and launching the Canadian Dental Care Plan. Focusing on the auto industry, the Prime Minister stressed that vehicles are Canada's second-most-exported product, directly supporting over 125,000 jobs and nearly 500,000 more indirectly. 'Canadian autoworkers don't just build vehicles; they build Canada,' Carney declared. He then unveiled the 'Strategic Response Fund,' a CAD$2 billion initiative to protect autoworkers' jobs from the impact of Trump's tariffs and strengthen the auto industry's supply chain. The former banker elaborated, 'Under our new plan, we will build an 'All-In Canada' network for auto manufacturing components. On average, an auto part crosses the border, often over that bridge, six times before assembly. In a trade war, that's a huge vulnerability.' Carney expressed his ambition to increase vehicle production in Canada, viewing it as both a shield against U.S. tariffs and an economic driver. He also pledged to accelerate growth in the critical minerals sector, referencing the 'First Mile Fund' established last Friday to connect mineral extraction sites to infrastructure. To streamline approvals, he announced a 'one-window approval process' to eliminate redundant federal requirements. Shifting to politics, Carney took aim at Conservative Party leader Pierre Poilievre, his election rival, echoing criticisms from a speech the previous day. He described Poilievre as negative, angry, and divisive, drawing a parallel to U.S. President Donald Trump: 'Someone who worships Donald Trump will kneel before him, not stand up to him.' Carney is campaigning as head of the Liberal Party against Poilievre's Conservatives in an election set to begin April 28. He concluded, 'We will build a stronger, more resilient auto industry. We will build Canada strong.' Related Articles Carney: 'We will build a stronger auto industry' China's vice premier raises 'solemn concerns' over tariffs in talks with US trade chief US Treasury's financial crimes unit won't require ownership reporting from US firms
Yahoo
26-03-2025
- Business
- Yahoo
Liberals and Conservatives campaign in Quebec, NDP proposes tax measures
OTTAWA — Federal leaders pushed policies for seniors, low-income voters and autoworkers as their campaigns focus on Ontario and Quebec on Wednesday. Conservative Leader Pierre Poilievre kicked off the day with a pledge to allow working seniors to earn up to $34,000 tax-free, an increase of $10,000. He also promised to raise the age for using RRSPs by two years, so seniors can keep growing their savings until age 73, and to keep the retirement age at 65 for old age security, the guaranteed income supplement and the Canada Pension Plan. Poilievre was travelling to the Quebec City area to discuss the policy later midday Wednesday. Liberal Leader Mark Carney is pledging a $2 billion Strategic Response Fund to protect manufacturing jobs and announced in Windsor, Ont. a plan to build more auto parts in Canada. He's also proposing that Ottawa prioritize Canadian-built products when purchasing government vehicles. Carny's announcement comes as the Canadian auto sector is holding its breath to see what U.S. President Donald Trump decides to do with tariffs that could target their industry directly. In Toronto NDP Leader Jagmeet Singh rolled out his tax plan, which would raise the tax exemption for the lowest incomes by a fifth. At a seniors recreation centre in Hamilton, Ont., Singh said anyone making less than $177,882 would not pay taxes on the first $19,500 they earn, saving them about $505 annually. He is expected to end the day with a campaign event in London. Carney, who spent the first few days of the campaign in Atlantic Canada, will spend the rest of today at a facility tour in London and a rally in Kitchener. The Liberal leader said Tuesday he expected to be in Quebec by Thursday. Poilievre is headed to Quebec on the campaign plane he unveiled this morning in Hamilton, Ont. — though the Conservatives chose to depart from past practice by not allowing political reporters to travel with the leader. He will hold a press conference in Montmagny, east of Quebec City, before an event in the provincial capital. Quebec is a seat-rich province with 78 federal ridings, and recent polls suggest the Liberals have reversed a lead previously held there by the Bloc. The parties' plans to visit Quebec come as Carney faces criticism for choosing not to take part in a French-language leaders debate proposed by Quebec broadcaster TVA that has since been scrapped. Other party leaders, including Poilievre, Singh and Bloc Québécois Leader Yves-François Blanchet, have needled Carney over his decision. "The Liberals want to be re-elected for a fourth term, but their leader is too afraid to debate me in French," Poilievre said on social media Monday. "If Mark Carney is too fragile to debate other leaders, how can he stand up to Donald Trump?" Singh was in Montreal earlier this week. A new Leger poll, released this week, suggests that 44 per cent of decided voters will vote Liberal in the upcoming election, ahead of the Conservatives at 38 per cent. The poll had the NDP at just six per cent. -with files from Kyle Duggan in Windsor, Ont., David Baxter in Toronto and Catherine Morrison in Ottawa This report by The Canadian Press was first published March 26, 2025. Dylan Robertson, The Canadian Press
