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Now that the Trump Presidency is a reality, we will find out what his policies really mean. Especially for the auto sector, which employs more than a hundred thousand people in this province.
For Canadians, this presidency could be really good or really bad, according to Marvin Ryder from DeGroote School of Business. Donald Trump has said he would impose a 35% tariff on any American goods made outside the country and then imported.
“If they make cars in Canada for sale in the American market, get a 35% duty, I know exactly what GM, Ford and Chrysler would do; move production back to the U.S and that would be devestating for us.”
Jerry Dias, head of the union that represents auto workers, hopes Trump will dump or fix the North American free trade agreement.
“He’s sexist, racist, makes anti-immigrant comments, violence and hatred, the man is unfit to lead, but when he talks about NAFTA and how American workers have been left behind and he’s absolutely correct.”
He says only Mexico has benefited from NAFTA.
“Mexico had zero auto industry pre-NAFTA, is on the verge of building 4 million cars, of which probably 3.5 million are going to the U.S. The U.S. ships 225 000 cars to Mexico. So it is glaringly unfair.”
Ford recently cancelled plans to build a plant in Mexico after construction had already begun. But Diaz says Trump has no reason to attack the trade deals with Canada.
Another thing that could affect Canadian business is Trump’s plan to slash business taxes. Some businesses operate in Canada because the corporate tax rate is lower here, if the U.S. rate is competitive Marvin Ryder says more companies could move back south of the border.
