Anxious times for automotive industry amid delayed tariff war

Windsor Assembly Plant workers are expressing their concerns amid the delayed tariff war. CTV Windsor’s Bob Bellacicco learns more.

The anxiety level was riding high Monday at Windsor’s Assembly Plant leading up to the announced delayed tariff war.

“It’s very tight in there today. It’s different.” said Brad Smith, a member of the trim launch team.

The build-up caused by U.S. president Donald Trump’s threat of tariffs instilled fear into the automotive sector.

“Especially after just coming out of inflation and recovering from COVID, it makes it very hard to earn a living and raise your family the way you’re used to,” Smith told CTV News.

Unifor Local 444 President James Stewart said if the tariffs go into effect, we will see a domino effect, starting with a slow down in sales for cars built in North America.

“And that could lead to short shifting and layoffs and other things, so the threat is absolutely real,” said Stewart.

Stewart added he hasn’t warned his membership because the tariff dialogue is “volatile”. He told CTV News the union is working to keep the plants running for as long as possible. They are in talks with all levels of government to ensure workers are protected as much as possible.

“We’re exercising every part of our collective agreements that have income protection clauses in them, should we start seeing plants being idled,” Stewart said.

Greg Layson, editor of Automotive News Canada, suspects automakers may have rushed shipments out of Ontario into the U.S., in order to build up inventory and prolong the inevitable.

“While it might not be immediate tomorrow, because they’ve built up their inventories, at some point those chickens are coming home to roost and they’re going to be paying 25 per cent more for their parts made in Ontario and their vehicles made in Ontario,” said Layson, who said the cost of a car in the U.S. may go up as much as $6,000.

Tariffs were put on hold Monday afternoon after Prime Minister Justin Trudeau announced Canada would continue to implement a $1.3 billion dollar investment in security along his country’s border with the U.S.

There are some like Brendan Sweeney, Managing Director for Trillium Network for Advanced Manufacturing, who believe a stronger America can’t be built ram tough in a day.

“You could spend four or five years getting a new engine plant up and running somewhere in the United States that could make those engines and building out that whole supply chain and hiring people, but you can’t do that now,” Sweeney said.

“You can’t do that in a month. You can’t even do that in a year.”

Trudeau said tariffs will be paused for at least 30 days while he and Trump continue to negotiate.