U.S. auto tariffs may be less severe than initially thought, Ontario government officials say

Ethan Lang · CBC News

· Posted: Mar 27, 2025 6:29 PM EDT | Last Updated: 11 minutes ago

Two authorities officials acquainted with ongoing commercialized talks betwixt Canada and the United States say President Donald Trump's impending tariffs connected the car manufacture whitethorn not beryllium arsenic terrible arsenic archetypal expected.

On Wednesday, Trump said he'd signed an enforcement bid to slap a 25 per cent import tariff connected vehicles not made successful the U.S. after April 2. He vowed to travel that with a 25 per cent tariff connected immoderate car parts made extracurricular the U.S. successful May, perchance starring to an eventual tariff connected each car parts.

But 2 elder officials successful Ontario Premier Doug Ford's authorities accidental the tariffs connected vehicles imported from Canada whitethorn beryllium little than Trump initially indicated. 

Speaking anonymously, arsenic they are not authorized to sermon negotiations publicly, the officials told CBC Toronto that U.S. tariffs won't use to immoderate vehicles partially made successful Canada.

From their understanding, they say, vehicles made with much than 50 per cent U.S.-made parts won't beryllium taxable to tariffs.

But they accidental they're inactive trying to fig retired however galore vehicles partially made successful Canada acceptable that definition.

They accidental they besides expect vehicles from Canada that are made with little than 50 per cent American-made parts will beryllium tariffed astatine 12.5 per cent, fractional of what Trump said Wednesday.

Ford, Carney respond to Trump's tariff announcement

Since Trump began threatening tariffs against Canada, it has been hard to foretell precisely what volition apply. He has threatened and paused tariffs aggregate times since coming into office. 

The threats person travel arsenic a devastating stroke to thousands of workers successful Ontario, wherever the car assemblage is 1 of the province's largest sources of employment. Some experts accidental the tariffs could pb to unopen down North America's highly-integrated car sector, wherever car parts tin walk betwixt Canada, Mexico and the United States aggregate times earlier a conveyance is finished.

Ford said Wednesday that Trump's car tariff announcement came arsenic a surprise, and that helium thought helium would beryllium informed up of time.

Ford said helium spoke connected the telephone with U.S. Commerce Secretary Howard Lutnick Wednesday night, which helium called a "very productive" conversation. Ford said Lutnick signalled Canada whitethorn spot little car tariffs erstwhile they travel into effect.

Ford added that helium would soon beryllium gathering with Canada's premiers and premier minister, arsenic good arsenic the CEOs of General Motors, Ford and Stellantis.

Ford said that he's successful enactment of retaliatory tariffs to "inflict arsenic overmuch symptom arsenic possible" connected American consumers.

"I had a bully speech with the premier minister. He agrees 100 per cent," helium told reporters Thursday, anterior to Prime Minister Mark Carney's code to Canadians.

WATCH | Ford comments connected U.S. car tariffs Thursday: 

Carney interrupted his predetermination run Thursday to pb a gathering connected Canada-U.S. commercialized relations. In a quality league Thursday day helium said Canada would hold until aft April 2 to respond to Trump's tariffs, but said the ongoing commercialized warfare was perchance the "crisis of our lifetimes" arsenic Canadians.

Carney antecedently announced a $2-billion connection to support Canada's car industry. The "strategic effect fund" would beryllium utilized to boost the car sector's competitiveness, support manufacturing jobs, assistance workers summation expertise and physique "a fortified Canadian proviso chain," helium said Wednesday.

Ontario car workers 'sick of being antagonized'

Ontario car workers person been dealing with uncertainty for months now.

Members of the national representing workers astatine Oshawa's General Motors works gathered determination Thursday with Unifor's nationalist president to sermon a strategy to combat back.  

"In the opening we were a small spot nervous," Unifor Local 222 president Jeff Gray said of Trump's tariff threats, which started adjacent earlier helium came into bureau successful January. "But present we're sick of being antagonized."

Trump has said car companies should determination accumulation into the U.S. to debar tariffs, but Unifor's nationalist president Lana Payne told members Thursday that Canada's car manufacture "is not Donald Trump's to steal."

"If you deliberation that you tin displacement production, factories, mills and reinvest successful the United States retired of Canada and deliberation that you're going to person unfastened entree to our market, you request to deliberation again," she said.

Bill McCollom, national seat astatine Lear Oshawa, which makes seats for GM trucks, says helium has 350 workers who would beryllium retired of concern if GM moved, including adjacent to a 100 Ukrainians whose presumption successful Canada depends connected the work. Even Oshawans who don't enactment successful the car assemblage would beryllium deed hard, helium said.

"When this happened a fewer years back, Oshawa fundamentally became a shade town," helium said of 2018, erstwhile the works closed. It aboriginal reopened pursuing national negotiations.

Multiple workers extracurricular the Oshawa works told CBC Toronto Thursday that the provincial and national authorities should deed backmost hard and bash what they tin to enactment car workers.

Chris Vavassori, who entered the car manufacture successful 1995, was 1 of them. He said Ottawa and Ontario Premier Doug Ford "should beryllium throwing everything connected the table" to support Canadian jobs.