Possible tariffs 'untenable' for auto sector, as latest threats cause uncertainty in Windsor

One Windsor car salesman says he's in wait and see mode after U.S. President Donald Trump threatened tariffs of up to 100 per cent on Canadian-made automobiles. 

Jeff Pawluck, the new car sales manager at Motor City Chrysler, says he hasn't heard much from his staff yet about the tariff threat. 

"We've had a couple of sales guys say that they got messages that people were worried maybe about their job," Pawluck said.

"We haven't heard that much of it yet because we just don't know the impact."

Pawluck says he and the industry have survived hard times before, such as the 2008 financial crisis, and he hasn't made any major moves in response to the latest threat.

He has not, for example, been stocking up on cars, because it costs money to have inventory sit on the lot. 

But he said consumers considering a car purchase do have some warning of possible price increases ahead.

"You know, if a person is looking at something in … the immediate future, is it probably going to be cheaper today than it would be if there [were] tariffs put on? Probably a million per cent."

Trump made the tariff threats during an interview with Fox News on Monday.

"If we don't make a deal with Canada, we're going to put a big tariff on cars," he said.

"Could be a 50 or 100 per cent because we don't want their cars, we want to make cars in Detroit."

Trump made the comments the same day he imposed 25 per cent tariffs on all steel and aluminum imports. 

He previously threatened 25 per cent tariffs on all Canadian products and 10 per cent on energy. 

The president of the Canadian Vehicle Manufacturers Association said his members have "deep concern" with the latest remarks.

"This industry has been founded on integration," Brian Kingston said.

"That's what makes Canada and North America competitive as an auto manufacturing jurisdiction. … So when proposals come forward to put in place tariffs that is effectively a tax. It raises costs, it has impacts on production and it challenges the competitiveness of the industry in a very very challenging global environment now."

The CEO of the Canadian Manufacturers and Exporters Association called the possible tariffs "clearly untenable on a whole pile of levels."

Dennis Darby said Canada needs to get to the bottom of what the tariff threats are really about.

"This is clearly not about protecting or improving American jobs at this stage," he said.

"I'm hopeful that the care companies in the U.S. … will speak up. It's going to have to be American stakeholders who speak up because I can't think of any other way out of this.

The president of Unifor Local 195, which represents some smaller manufacturers in the auto sector, said the union and the government have worked hard to attract investment to Windsor.

He said he hopes Trump's actions will not lead to investors changing their mind about Canada and moving south of the border.

But Emile Nabbout said that chaos can lead to opportunity.

"We have to be relying on ourselves," Nabbout said.

"We learned this from COVID that we shouldn't be relying on other countries in the minute of chaos. This is the second wake up call for all our political leadership in this country."

Canada, Nabbout said, needs a comprehensive industrial policy that covers everything from natural resources up to manufacturing, one that will protect Canadians going forward.