Rolls of coiled steel are seen at Canadian steel producer Dofasco in Hamilton Ont., Tuesday, March 13, 2018. The House of Commons trade committee will be back at work later today with a special meeting that has one major aim, demonstrating the broad economic pain of the Trump administration’s crushing steel and aluminum tariffs. THE CANADIAN PRESS/Tara Walton

Trump’s tariffs will be more painful for Canada than U.S.: economist

TORONTO — The Trump administration’s tariff threats have the potential to drive companies currently operating in Canada out of the country, the president of a Canadian automotive association said Tuesday.

The United States has already imposed tariffs on the steel and aluminum industries and has threatened to impose a 25 per cent levy on Canadian-made autos.

The tariffs could make Canadian-made products uncompetitive and add $6,000, $10,000 or more to the cost of a vehicle, said David Adams, president of Global Automakers of Canada, at an event sponsored by the Economics Club of Canada.

He said a non-automotive company he knows has decided it can’t expand in the United States from Ottawa, because of the uncertainty, so it’s opening a U.S. office and the same could happen to automotive companies.

“The uncertainty effectively does the job of … driving more investment into the United States as the safe harbour,” Adams said.

The Trump administration hasn’t necessarily realized that the its tariffs will also hurt the United States, said MaryScott (Scotty) Greenwood, chief executive of the Canadian American Business Council — pointing to a recent announcement by Harley-Davidson.

A tariff war between the U.S. and many of its trade partners has already prompted the iconic American motorcycle company to move production of motorcycles bound for Europe overseas, blaming European Union tariffs it said would add an estimated $2,200 cost to the average bike. That prompted President Donald Trump — whose own tariffs prompted the EU moves — to accuse Harley of using tariffs as an excuse for moves already planned.

“It’s a very dangerous game we’re playing here, economically,” Greenwood said.

Prime Minister Justin Trudeau has announced Canada will impose $16.6 billion in retaliatory tariffs on U.S. products coming into Canada, which go into effect on Sunday.

But CIBC chief economist Avery Shenfeld said Tuesday the United States is far better equipped than Canada to withstand the use of tariffs as a “sledge hammer” in trade negotiations.

Some Americans will face higher costs on imported goods from Canada but U.S. producers will be at a smaller risk because their home market is so much bigger than ours, Shenfeld said during a panel discussion about NAFTA in Toronto.

“If you are doubting whether or not you can produce that widget for (a car) in Canada and avoid a 25 per cent tariff when you sell that part to the American plant, you’re … going to want and see what happens,” he said.

“Canada and Mexico can’t afford to have this cloud of uncertainty, to a much greater extent than the U.S. can.”

Just Posted

Updated: Police seek driver who struck and killed mother of five

The pedestrian hit and killed on the Sunchild First Nation on Friday… Continue reading

Stettler county issues stop-work order to Paradise Shores

The County of Stettler says its municipal planning commission has issued a… Continue reading

Red Deer campers make the best out of chilly start to May long weekend

A chilly start to the May long weekend didn’t stop Red Deer… Continue reading

May long weekend off to cold start in Red Deer

Central Albertans are kicking off the May long weekend with a chilly… Continue reading

Red Deer woman seeks tougher laws after family dog killed by driver

An online petition launched a week ago has 1,300 supporters

WATCH: First Red Deer Market of 2019

The event is held every Saturday in the Servus Arena parking lot

Cast your votes for the Best of Red Deer

Nominations for the Best of Red Deer Readers’ Choice Awards are officially… Continue reading

Stone scores hat trick as Canada dumps Germany 8-1 at world hockey championship

Canada 8, Germany 1 KOSICE, Slovakia — Canada extended its winning streak… Continue reading

Quebec credits new gun registry for huge jump in number of voluntary surrenders

MONTREAL — The Quebec government is crediting its new gun registry law… Continue reading

Two N.L. Independent say they look forward to minority government

ST. JOHN’S, N.L. — Newfoundland and Labrador’s recent election resulted in a… Continue reading

Montreal researchers create audible hockey puck for visually impaired players

MONTREAL — A team of Montreal university researchers has developed an audible… Continue reading

Female lawmakers speak about rapes as abortion bills advance

COLUMBUS, Ohio — For more than two decades, Nancy Mace did not… Continue reading

Biden rejects Democrats’ anger in call for national unity

PHILADELPHIA — His party may be enraged by Donald Trump’s presidency, but… Continue reading

No winning ticket for Friday night’s $22 million Lotto Max jackpot

TORONTO — No winning ticket was sold for the $22 million jackpot… Continue reading

Most Read