Toronto/CMEDIA: Ontario Premier Doug Ford reportedly vows to continue fighting for “zero tariffs” after Canada was spared from additional levies, and to keep U.S. alcohol off LCBO shelves.
Speaking with reporters following a virtual meeting with Prime Minister Mark Carney and other premiers on Thursday morning, Ford said it was a “big relief” for Canada not to be included on a list of countries facing “reciprocal” tariffs, nevertheless previous tariffs were still in place.
Varying “reciprocal” tariffs on dozens of countries were slapped when an executive order signed by U.S. President Donald Trump on Wednesday, but an exemption for goods that are compliant with the existing North American trade pact between Canada, the United States and Mexico was kept in place.
Trump, however, confirmed a 25 percent tariff on all imported vehicles that takes effect today.
Vehicles manufactured in Canada would expectedly eventually be subject to that tariff bust based on the percentage of parts which are foreign-made these will be taxed at a lower rate.
While a 25 percent tariff on steel and aluminum was rolled out by the U.S. last month, most Canadian goods which are not a part of the Canada-United States-Mexico Agreement (CUSMA) also face a 25 percent tariff.
“We (the premiers) all agreed that we got the best of a bad deal which in my opinion is still totally unacceptable. The only thing that is acceptable is zero tariffs. We are going to continue targeting zero tariffs,” Ford said.
Speaking with reporters before a news conference was held by Carney, Ford announced a 25 percent counter-tariff on U.S.-made vehicles.
Ford also indicated that Ontario would support such a measure and that the province would work to support auto workers though he did not provide specifics.
“I do believe and I would support retaliation tariffs very similar to what they have against us in the auto sector but that is strictly up to the Prime Minister,” Ford said. “I am a strong supporter of showing the U.S. that we negotiate through strength and not through weakness but it will be up to the Prime Minister to tell the country how we are going to retaliate.”
While the tariffs on vehicles were clear, Ford told reporters that it is his understanding that levy will only be applied on the portion of vehicles that are made up of foreign parts which would facilitate cut the tariff in half in many cases
The tariffs are already having a chilling effect on the heavily integrated North American auto industry with Stellantis announcing plans to shutter its Windsor Assembly Plan for the next two weeks and another plant in Mexico for longer.
Stellantis also added that as a result of a pause in production at the two plants,about 900 employees at some of its U.S. facilities will be temporarily laid off.
Speaking with reporters, Ford said that the real pain that is going to be felt as a result of Trump’s tariffs would be job losses.
A number of retaliatory measures in response to the U.S. tariffs have been taken by Ontario including pulling U.S, alcohol from LCBO shelves and banning American companies from approximately $30 billion in provincial contracts.
On Thursday Ford was asked about those measures and said they would remain in place.
