'Billions' in investment, jobs, in limbo for Windsor, Ont., mayor says, amid tariff threat
A 30-day pause on blanket tariffs on Canadian goods will expire in early March
Drew Dilkens says never before has he seen Canada come under "economic attack" by the United States like it has recently with tariffs talk from President Donald Trump.
The mayor of Windsor — a southwestern Ontario border city — didn't mince words when speaking with CBC Windsor Morning host Amy Dodge on Wednesday.
"This is offensive in so many ways," he said, citing the countries as close friends, allies and trading partners.
"I've never seen anything like this and never thought I would. But we are where we are."
With a 30-day pause on Trump's threat of blanket tariffs on Canadian exports to the U.S. set to expire in early March, Dilkens said the sense of uncertainty that's been created across the community is unsettling for many.
"I just think it's nonsense. He [Trump] keeps bringing people and countries to the brink here by announcing further tariffs and saying it's going to happen 30 days from now. If this happens, if that were to happen to the auto industry, it would just be devastating — and devastating on the U.S. side as well."
A large percentage of the workforce in the Windsor area is directly or indirectly reliant on the automotive industry and its cross-border connection.
Speaking at a luncheon later Wednesday, Dilkens gave a "state of the city" address.
"I'm not going to sugarcoat it for anyone in this room, and I hope that I am dead wrong," Dilkens told a crowd of business leaders and community leaders. "But it may get rough."
Dilkens said the city's economic development office is chasing about $6 billion in investment that would bring about 4,600 jobs to the region. But, he said, it's in limbo for now.
"Everyone is scared. The capital is parked on the sideline. They're waiting to see what happens. They want some certainty, but they put hundreds of millions, in some cases hundreds of millions of dollars on the table," he said.
"They're not just jumping to the United States because they think that's a better environment. They're just waiting because they all think — and we all feel — that this is madness."
WATCH | Trump's threatening tariffs on Canadian cars and it's causing uncertainty in Windsor:
Trump has said he'd prefer all American vehicles are made fully in the U.S., boxing out other countries.
"Moving backwards and saying that we're going to get rid of this [cross border, international auto industry] and just somehow repatriate all production, all jobs back to the United States: good luck," Dilkens said.
"It's going to take decades to do that and hundreds of billions of dollars. We'll see the stock market tank … cause interest rates and inflation to rise in the United States — and overall [it] would be really bad for their residents as well."
He called the threat "terrifying," and said it "makes no sense" and must be taken seriously.
"It's just hard to believe that one man can cause so much chaos and try and disrupt a relationship that's been so, so strong for so long.
"The threat of even a 25 per cent tariff in a city like ours being so auto centric and so integrated with the United States will be … I hate to use the word … but it could be catastrophic."
WATCH | Canadian auto sector would turn to U.S. courts if needed in tariff fight, rep says:
Dilkens said that in the absence of nothing else, counter-tariffs imposed by Canadian governments are the only tool you have in a trade war.
Border city union says members 'very nervous'
Windsor's largest single employer is Stellantis and its biggest union is Unifor Local 444, which represents workers at the automaker's assembly plant.
Union president James Stewart said most of his members, including ones at other manufacturing plants, are "very nervous."
"It's anyone that's involved in auto or in auto parts on both sides of the border," he said earlier this week.
"If they're not nervous, they should be, because ultimately a 25 per cent tariff … will be devastating.
"They're worried about their futures. They're worried about their families. They want to go to work and build good quality vehicles."
Stewart said if the tariffs go ahead, production would shut down "within weeks."
"We would try and make sure we keep the plants running as long as we can. But we saw in COVID, the part supply chain … it's designed in such a way that if you have a major break in that supply chain, it affects the whole industry. And that could happen very quickly here."
According to Stewart, the federal government's response, so far, has been "good."
"Canada has said they're going to retaliate and I think that's the right call. They have to match the threat with a heavy hand … with a hard hand. I think Canada is on the way to doing the right thing."