Money Auto tariffs would be 'catastrophic' to Canada and cost 100,000 jobs, dealers warn

10:55  07 july  2018
10:55  07 july  2018 Source:   cbc.ca

Here’s How You Could Be Affected By the Canada-U.S. Tariff Dispute

  Here’s How You Could Be Affected By the Canada-U.S. Tariff Dispute It doesn’t look great for your wallet, or sweet toothTensions between U.S. President Donald Trump and Canadian Prime Minister Justin Trudeau are on the rise, and it could impact your wallet.

The U.S. government threat to put a tariff on all Canadian -made vehicles would be " catastrophic " to Canada 's economy, costing 100 , 000 jobs and adding as much as , 000 to the sticker price of a new car if Canada responds in kind, dealers say.

Just last month, however, TD Bank warned that Trump's auto tariffs could cost Canada 160, 000 jobs , especially if Canada retaliates. Auto tariffs would kill 1 out of every 5 manufacturing jobs in Ontario, TD says.

a car parked in a parking lot: Retaliatory tariffs on American-made cars would add at least $5,000 to the cost of a new car in Canada, CADA says.© Reuters Retaliatory tariffs on American-made cars would add at least $5,000 to the cost of a new car in Canada, CADA says.

The U.S. government threat to put a tariff on all Canadian-made vehicles would be "catastrophic" to Canada's economy, costing 100,000 jobs and adding as much as $9,000 to the sticker price of a new car if Canada responds in kind, dealers say.

Following recently announced levies on steel and aluminum, U.S. President Donald Trump has repeatedly threatened in recent months to impose a similar tariff on Canadian-made vehicles, something the Canadian Automotive Dealers Association warned Friday may be enough to tip the entire economy into recession.

Canada announces billions in retaliatory tariffs against US

  Canada announces billions in retaliatory tariffs against US TORONTO - Canada announced billions of dollars in retaliatory tariffs against the U.S. on Friday in a tit-for-tat response to the Trump administration's duties on Canadian steel and aluminum. Prime Minister Justin Trudeau's government released the final list of items that will be targeted beginning July 1. Some items will be subject to taxes of 10 or 25 per cent. Trudeau and U.S. President Donald Trump spoke late Friday. "As he has said in past Prime Minister Justin Trudeau's government released the final list of items that will be targeted beginning July 1. Some items will be subject to taxes of 10 or 25 per cent.

Trump tariffs could add , 000 to price of new vehicle in U.S. Several individual automakers, including Toyota and General Motors, warned of potential job losses in the industry. Elimination of auto tariffs would be "good for the industry and good for the U.S.," Samuelsson said.

FTSE 100 7,615.63. WASHINGTON (Reuters) - Two major auto trade groups on Wednesday warned the Trump administration that imposing up to 25 percent tariffs on imported vehicles would cost hundreds of thousands of auto jobs , dramatically hike prices on vehicles and threaten industry

The metal tariffs saw steel face a surcharge of 25 per cent, while aluminum was hit with a 10 per cent hike. The president has suggested a similar plan for cars, one that would see 25 per cent on cars themselves, and 10 per cent on parts.

"This — or anything close to it — would be catastrophic for not only the Canadian automotive industry but for the economy as a whole," CAPA's chief economist Michael Hatch said at a news conference Friday in Ottawa.

The group, which represents 3,200 Canadian car and truck dealers, says that more than 100,000 manufacturing jobs would be at immediate risk if tariffs are imposed. "Longer term, indirect job losses at dealerships and elsewhere would drive this number much higher," CADA said.

Other recent reports from banks have had similar conclusions, with Toronto-Dominion Bank recently calculating that the job toll from auto tariffs could be in excess of 160,000 .

U.S. steel tariffs cause layoffs in Ontario

  U.S. steel tariffs cause layoffs in Ontario A manufacturing company is laying off workers in Ontario in response to American tariffs on Canadian steel and aluminum. A spokesman for Tenaris, which manufactures steel pipes, says 40 workers at the company's mill in Sault Ste. Marie, Ont., will be laid off on Sunday due to changes in the export market.David McHattie says the employees were hired at the northern Ontario mill to help with increased demand for the company's products, including steel pipes.

Two major auto trade groups on Wednesday warned the Trump administration that imposing up to 25 percent tariffs on imported vehicles would cost hundreds of thousands of auto jobs , dramatically hike prices on vehicles and threaten industry spending on self-driving cars. A coalition representing major.

Two major auto trade groups on Wednesday warned the Trump administration that imposing up to 25 percent tariffs on imported vehicles would cost hundreds of thousands of auto jobs , dramatically hike prices on vehicles and threaten industry spending on self-driving cars. A coalition representing major.

Hatch's analysis suggests that Ontario would feel the impact more than anyone, as the province is home to the lion's share of all auto and parts manufacturing in Canada.

On the consumer side, CADA estimates that if Canada responds with similar tariffs of their own on U.S. cars — just as they did in retaliation to the metals tariffs — he expects the average price of a car to increase by between $5,000 and $9,000, depending on the make and model. The average new car in Canada currently costs about $40,000, CADA says.

"Impacts on industry on both sides of the border will be significant but in the end it is the American consumer that will pay by far the biggest price if tariffs are imposed," Hatch said. "These figures aren't alarmist, they are the reality that we face."

Car dealerships employ 156,000 Canadians, CADA says, and as many as 30,000 of those jobs could immediately be at risk if any car tariffs come to pass.

"In a trade war, we point the guns at ourselves," Hatch said.

The group urges lawmakers to do anything they can to avoid that scenario, by working to secure a new NAFTA deal. But if the worst should happen, CADA is recommending three steps it wants the federal government to take in order to minimize the damage:

  • Cut sales taxes for new vehicle sales to offset the tariffs.
  • Implement a "cash for clunkers" style program that would encourage owners to trade in their older vehicles.
  • Produce an immediate suite of personal and corporate tax reforms aimed at enhancing Canada's competitiveness.
  • U.S. challenges Canada's retaliatory tariffs .
    OTTAWA - The United States says it's firing back at the Canadian government's recent retaliatory tariffs on American imports by launching a formal challenge with the World Trade Organization. The federal Liberal government introduced reciprocal duties earlier this month on some U.S. imports after the Trump administration slapped Canada — and other American allies — with tariffs on steel and aluminum. Foreign Affairs Minister Chrystia Freeland has called Washington's metal tariffs absurd and illegal because they've been applied on the premise that Canada represents a national security threat to the U.S. Ottawa's response has been $16.

    Source: http://ca.pressfrom.com/news/money/-82620-auto-tariffs-would-be-catastrophic-to-canada-and-cost-100-000-jobs-dealers-warn/

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