Local manufacturers in limbo amid looming auto tariffs

Workers are bracing for impact after President Trump says he will put tariffs on all cars that aren’t made in the United States. CTV’s Alexandra Holyk reports.

Automotive manufacturers in Waterloo Region are preparing a line of defence against the latest threat by U.S. President Donald Trump.

On Wednesday, Trump announced a 25 per cent tariff on automobile imports, set to come into effect on April 2. The move is being criticized by Canadian politicians as an attack on the nation and its economy.

“It’s being received with disbelief both in Canada and the United States, because this idea that non-American cars are going to be exclusively tariffed is ridiculous,” said Tony LaMantia, president and CEO of the Waterloo Economic Development Corporation.

LaMantia, along with other industry experts, said the situation will be difficult to navigate, especially since auto parts typically move across the border several times before hitting the dealership floor.

“It is a significant impediment to the free flow of parts which are critical to both Canada, the U.S. and Mexico’s automotive industry,” said LaMantia. “So all three industries are going to be impacted in a very significant way.”

Unifor Local 1106, which represents around 1,000 auto workers in Waterloo Region, said manufacturers will feel it first and fast.

“There could be massive job losses, which in turn, puts the threat of families losing their homes,” said Mike Camblin, the union’s service and manufacturing representative.

“This effects American workers equally as much as Canadian workers,” he continued. “This is not Canada’s problem. We didn’t create this. It was the president of the United States.”

As April 2 draws closer, all eyes will be on area auto plants, including Toyota.

In a statement to CTV News, a company spokesperson said the situation is “highly fluid.”

“We have no plans to change our production within the foreseeable future,” the statement reads. “Our vehicles are in high demand, and we will continue to build to plan.”

Toyota also said it will continue working with both the federal and provincial governments toward a sustainable solution.

“If they’re saying that they’re ready, then they’re ready,” LaMantia said, referring to Toyota. “And I’d say overall for the region, as much as there’s fear, disbelief, we have a game plan.”

LaMantia also said line workers will feel the effects within a couple weeks, while consumers can expect to see the cost of cars rise in a couple of months.

“In terms of the cars themselves, you’re going to start to see the signs when the price of rental vehicles or used vehicles starts to go up dramatically,” he said.