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Windsor

‘They won’t be able to survive’: Windsor auto industry reels as U.S. tariffs take effect

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What’s the impact of tariffs on the auto industry and other businesses? CTV Windsor’s Michelle Maluske and Travis Fortnum report.

The 25 per cent tariffs imposed by U.S. President Donald Trump have sent shockwaves through the auto industry, leaving thousands of workers and manufacturers in uncertainty.

For Windsor, a city where vehicle production is an economic pillar, the implications could be devastating.

James Stewart, president of Unifor Local 444, described the situation as dire.

“It’s a pretty rough day,” he said.

“We’ve been preparing for it for a long time. But now that it’s here, it certainly is a rough and scary day for Canada.”

Windsor is one of Canada’s most trade-dependent cities, with $9.8 billion in motor vehicle exports and another $4.5 billion in auto parts, according to Invest WindsorEssex

Unifor says more than 20,000 jobs in Windsor could directly be at risk, as industry analysts warn tariffs could shut down auto production within a week.

030425_windsor auto manufacturing tarrifs An employee works on the production line at the Martinrea auto parts manufacturing plant in Woodbridge, Ontario on Monday February 3, 2025. The site supplies auto parts to both the Canadian and US auto plants. (Chris Young/The Canadian Press)

Workers fear a repeat of 2008

John D’Agnolo, president of Unifor Local 200, is bracing for economic fallout reminiscent of the 2008 financial crisis.

“I remember going through that,” he said.

“I remember people dropping keys off at the bank for their car. People losing their homes.”

For many in Windsor, the tariffs don’t just threaten their jobs — they threaten their way of life.

“We finally started hiring in the last few years. And thinking about the mortgages you have today that you didn’t have in ’08. They won’t be able to survive,” D’Agnolo said.

Beyond assembly plants, Stewart warned that the economic ripple effect could hit other local industries hard.

“It’s going to affect pizza places, it’s going to affect movie theaters, it’s going to affect restaurants,” he said. “People aren’t going to be going out and spending their money not knowing how things are.”

“They’re not going to be doing those things that you would do normally because you’re scared of what your finances are going to be like in the coming weeks,” Stewart said.

030425_windsor auto manufacturing tarrifs Workers arrive for their shift at the Chrysler (FCA) assembly Plant in Windsor, Ont., on Tuesday, June 12, 2018. (Geoff Robins/THE CANADIAN PRESS)

Cross-border trade at risk

The tariffs could severely disrupt North America’s highly integrated automotive supply chain.

Auto parts cross the Windsor-Detroit border multiple times before a finished vehicle reaches consumers.

The U.S. industry itself relies on Canada for about 20 per cent of its parts, and industry experts say the tariffs could drive up the cost of a new vehicle by $4,000 to $12,000.

Stewart pointed to the slim profit margins that suppliers operate within.

“If they’ve got between a 6 and 10 per cent profit margin, the whole profit margin is going to be eaten up entirely by a 25 per cent tariff,” he said.

A call for government action

As Windsor autoworkers brace for uncertainty, union leaders are calling on the Canadian government to step in with support.

“Canada has got to respond. And it’s really up to both levels of government to do everything they can and use every tool they can to defend Canada,” Stewart said.

He compared the potential fallout to the COVID-19 crisis, urging the government to implement financial supports similar to those used during the pandemic.

“We have good bargaining agreements that cover a lot of our members in terms of financial supports through layoff, but the government has to do similar to what they did in COVID.”

D’Agnolo echoed the call for swift action.

“We have to start looking at making sure that we protect these workers,” he said.

For now, production at Windsor Assembly continues, but the union warns that could change by weeks end.

Automakers are monitoring the situation, and suppliers are already facing mounting pressure.

“We’re talking with the companies,” Stewart said.

“We’re trying to make sure they’re building cars as long as they possibly can.”