U.S. tariffs could spell job losses and reduced spending in GTA, expert says
25 per cent tariffs on virtually all Canadian goods to come into effect Tuesday
U.S. President Donald Trump's trade war against Canada could mean job losses and reduced spending in Toronto and its surrounding areas, one expert says.
Trump is imposing a 25 per cent tariff on virtually all goods from Canada, according to a senior Canadian official who shared details of the plan with CBC News on Saturday.
Treaty obligations between Canada and the U.S. "have been thrown out of the window," said Peter Morrow, an associate professor of economics at the University of Toronto.
"To the degree that there are laws and there are rules, we don't know that they're going to be followed. The path forward is very unclear," he said.
The tariffs include a 10 per cent tariff on Canadian energy products. They are expected to take effect on Tuesday and remain in place until Trump is satisfied Canada is doing enough to stop the flow of fentanyl into the U.S., the government official said.
Unlike when Trump imposed tariffs on Canadian aluminum and steel in 2018, these are "across the board tariffs" that will also hit the auto industry, Morrow said.
Automobile factories located in southern Ontario include the GM Oshawa Assembly plant, the Oakville Assembly Complex, owned by Ford Motor Co., and Brampton Assembly Plant, operated by Stellantis.
American and Canadian auto industries are "basically one transnational industry," Morrow said, with parts and unfinished cars moving back and forth between the two countries before they are fully assembled.
"A tariff will hit those parts and those semi-assembled cars every time they hit the border. It's not going to be a one-time thing," he said.
"This is going to be tremendously disruptive to the auto industry."
Local produce industries could also be affected, Morrow said, such as farms in Leamington, Ont., that ship peppers to the midwest.
If people lose their jobs, that could mean reduced spending, he said.
"Restaurants might have a bit of a harder time as people have less money in their wallets," he said.
As for the cost of groceries potentially rising, Morrow said that depends on how the Canada–U.S. exchange rate is impacted by these tariffs, as well as any retaliatory tariffs from the federal government that make American goods more expensive.
Morrow said the impact of the tariffs could be felt immediately with the Canadian dollar losing value. Over the next month or so, temporary layoffs and reduced spending are likely, he said.
Toronto pizzeria boycotting American products
In response to the trade war, one Toronto pizzeria is boycotting American products indefinitely.
Graham Palmateer owns Gram's Pizza in the Junction Triangle. He said he decided on the boycott over the past few weeks, after it seemed more certain that the U.S. would impose tariffs on Canada.
"They're not behaving particularly neighbourly," he said in an email to CBC Toronto on Saturday.
Palmateer said some of his favourite pizza products are American — including California tomatoes and pepperoni made south of the border. He also sold American-made beverages.
"I won't be stocking any of these items for the foreseeable future, and will seek out alternatives from Canada and elsewhere," he said, adding that he is also no longer using Costco as a distributor.
Since Palmateer announced the boycott in an Instagram post last week, he said the response has been overwhelmingly positive. Another business has told him they're also considering a boycott, he said.
"The more the better, in my view," he said.
Buying domestically produced goods will help offset the impact of tariffs on Canadian jobs, Morrow said. But he added that buying locally may not be "pain free," since these products may be more expensive.
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