The Canadian automotive industry could not sustain a permanent tariff implemented by the U.S. government, according to the chair of Unifor’s Auto Council. The sector remains at the forefront of the Canada-U.S. trade war, which intensified after a deal to avoid new sweeping tariffs imposed by the latter was not reached on Friday night. John D’Agnolo, who also represents Ford Motor Co. workers in Canada, said he supports the government’s decision to walk away from the table. “Clearly the signal is that the U.S. was going to hit us with a giant tariff that would impact us, our industry and thousands upon thousands of jobs would be lost,” D’Agnolo told CTV News on Saturday morning. In response to questions on Saturday, Prime Minister Mark Carney noted the U.S. made “last-minute changes” “The Americans wanted to limit it to autos only, not include medium and heavy duty trucks which is a big change, obviously,” Carney said. It’s been speculated that a deal would have required an ongoing 15 per cent tariff on some automotive products – a reduction from the current 25 per cent reciprocal tariffs. Over the long term, D’Agnolo said the industry cannot afford a deal which includes any permanent tariffs. “I believe that companies wouldn’t have been able to survive on 15 per cent,” he said. D’Agnolo says the profit margins of automotive manufacturers are too thin to withstand the added pressure of sustained levies. At the time the tariffs were first announced, the U.S. Government claimed Canada imposes quotas to compel U.S. auto companies to invest in production in Canada. Between April 2025 and March 2026, Canadian imports of U.S. vehicles dropped by 22 per cent compared to the same period a year prior, the U.S. Administration noted. D’Agnolo said the focus should instead be on companies who don’t have a manufacturing footprint in North America but still market their vehicles to consumers here. “You’re actually trying to decimate the auto industry, so they don’t build anything here, even though we sell two million cars here,” D’Agnolo noted. Without a new deal in place, D’Agnolo said affected industries will need support from all levels of government. According to the Canadian Vehicle Manufacturers Association, the industry is responsible for more than 603,500 direct and indirect jobs across Canada.
