Manufacturing and political leaders in Windsor, Ont., the automobility capital of Canada, have mixed feelings about U.S. President Donald Trump stopping short of imposing tariffs on Canada during his first day back in office.
Jonathon Azzopardi, president of Laval Tool and Mould, said the move offers a temporary reprieve for Windsor’s manufacturing sector, which faced significant challenges during the last round of tariffs seven years ago.
“There’s been a lot of anxiety and a lot of discussions about what the future is going to look like. To hear that he’s not going to put [tariffs] on day one is good,” Azzopardi said.
“But he didn’t say he wasn’t going to place them at all. So that’s still a big concern.”
Azzopardi recalled the heavy toll tariffs took on Laval’s bottom line in 2018. That year, the U.S. imposed steel and aluminum tariffs on Canadian imports, prompting Canada to respond with dollar-for-dollar retaliatory measures.
At the time, Laval Tool and Mould, heavily reliant on U.S. steel, was locked into contracts that prevented sourcing steel elsewhere.
As a result, the company faced higher costs for raw materials entering Canada and additional expenses when exporting finished goods to the U.S.
“We were getting hit from both sides,” said Azzopardi.
Trump’s decision to hold off on tariffs for now doesn’t mean they’re off the table entirely.
According to Reuters, he plans to direct federal agencies to investigate trade deficits and address unfair trade and currency practices by other nations.
During his inauguration speech Monday, Trump didn’t outline specific tariff plans but reiterated his intention to establish the External Revenue Service. The agency would collect “massive amounts” of tariffs, duties and other revenues from foreign sources.
Windsor West MP Brian Masse said the uncertainty highlights the need for Canada to adopt a National Auto Strategy, focusing on “domestic procurement.”
“Trump may have woken up the sense of unity — that nationalism that Canada needs — in a positive sense,” Masse said.
“Let’s not waste a single day to take advantage of unity and push Canadian products and services.”
Masse said prioritizing Canadian-made parts and products would eliminate the threat of U.S. tariffs. However, he acknowledged that shifting to a “Buy Canadian” approach would take time due to the deep integration of Canadian and American supply chains.
“You just can’t change course right away, and we shouldn’t, because we have great partnerships across the board that are important,” said Masse. “But what we can do is diversify. Let’s do it brick-by-brick.”
John D’Agnolo, president of Unifor Local 200, said Trump’s decision to delay tariffs could indicate a willingness to collaborate.
“I’m hoping he’s going to listen to the parties on the Canadian side, along with a lot of the people close to home,” said D’Agnolo, reflecting on the significant impact tariffs had on auto production during Trump’s first term.
“It cost 20 per cent more to bring aluminum back and forth across the border. Considering how often parts cross the Canada-U.S. border, tariffs would create tremendous costs and inefficiencies.”
According to D’Agnolo, Ford’s two plants in Windsor, Ont., were heavily impacted by U.S. tariffs on aluminum in 2018, which significantly increased production costs.
Aluminum, a key material in vehicle manufacturing, crosses the border multiple times during production, with each crossing subject to tariffs.
These added costs made it difficult for Ford to absorb the financial burden, ultimately leading to higher vehicle prices for consumers.
In 2018, the CEO of Ford Motor Company said Trump’s taxes on imported steel and aluminum cost the company $1 billion the following year.
“We should really learn from what happened before, because tariffs could put us in a whole lot of trouble,” said D’Agnolo.
“It could cost us hundreds or thousands of jobs over here and then we’d be going after the government to enhance income supports.”
