Carney meets with auto sector as Trump’s trade war stretches on – National | Globalnews.ca
Prime Minister Mark Carney is meeting with the heads of the Canadian auto industry as concerns mount over the ongoing impact of tariffs imposed by the U.S.
The industry has been facing a 25 per cent tariff from the U.S. on the sector itself, as well as a 50 per cent duty on steel and aluminum, materials used in the manufacturing of vehicles.
However, there are exceptions for components produced in the U.S.
Carney will be meeting with representatives from the Canadian Vehicle Manufacturing Association, Ford Canada, Stellantis Canada and GM Canada during the talks on Wednesday.
Brian Kingston, president and CEO of the Canadian Vehicle Manufacturing Association, told reporters in brief comments while heading into the meeting that electric vehicle mandates under current targets, as well as a range of other policies, are “not sustainable.”
U.S. President Donald Trump has claimed for months that the U.S. does not need any Canadian-made vehicles, and called on automakers to shift all production to the U.S.
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Canada has imposed retaliatory duties on the U.S.
Trump and Carney are currently negotiating a trade deal with a July 21 target date.
It’s not known at this time how wide a scope a potential deal could cover.
What’s the impact of the tariffs so far?
The impact has been felt in Canada, with a report released in April by Ontario’s financial accountability officer stating the province — which houses a large part of Canada’s auto industry — could enter a “modest” recession due to the tariffs.
The report found the impact of those tariffs would slow Ontario’s growth in 2025 and could lead to a modest recession this year, while remaining slow in 2026, though growth would return to just over one per cent.
Rising unemployment numbers in April also indicated the impact tariffs were having on the economy.
Ontario saw the biggest loss in April, with 35,000 jobs lost, mostly in the manufacturing sector.
Global News reached out to various automakers and organizations that represent them, as well as Unifor, which represents autoworkers, to inquire how many jobs have been lost as a result of tariffs.
In statements to Global News, both Stellantis and General Motors said no job losses have occurred due to tariffs.
The Global Automakers of Canada, which represents Toyota and Honda, also said there have been no job losses at this time.
Ford, the Canadian Vehicle Manufacturers Association and Unifor did not respond by publication.
What is Canada’s current EV mandate?
The federal government under former prime minister Justin Trudeau set a target of 100 per cent zero-emission sales of light duty vehicles by 2035.
Last month, Environment Minister Julie Dabrusin indicated the mandate won’t be changing, despite calls by auto makers and other industry leaders to end them.
However, the government in January halted its Incentives for Zero-Emission Vehicles program, which offered up to $5,000 off the cost of a new EV. Dabrusin said Ottawa does plan to bring back consumer rebates for EVs, but doesn’t know what they’ll look like yet.
That lack of rebate, industry leaders say, makes Canada’s goal for EVs unrealistic.
The vehicles have represented only 8.7 per cent of all new vehicle sales in Canada in the first quarter of 2025 — a drop from 16.5 per cent in the fourth quarter of 2024, according to Statistics Canada data.
— with files from The Canadian Press
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