Trump tariffs are difficult to handle, but Canada can take action, Windsor and auto leaders say

As leaders across Canada and in Windsor, Ontario, sound the alarm about what a potential 25 percent tariff imposed by newly elected President Donald Trump would mean for the Canadian economy, they also say there are ways to deal with it .

Windsor Mayor Drew Dilkens told CBC News Network Tuesday morning that he believes the pledge could be a negotiating tactic aimed at sparking discussions on the U.S.-Mexico-Canada Trade Agreement (USMCA), which is due to be finalized in 2026 revised.

But, he said, it’s also one he takes very seriously.

And if that’s the case, what can he do to be a short-term disruptor that gets everyone to the negotiating table and gets them to the table quickly. And this is one of those things that will get a lot of attention. “

Dilkens, who also served as mayor of Windsor during Trump’s first term, called Trump’s threats “a bit of a rinse, wash, repeat cycle again,” recalling the conflicts over aluminum tariffs and softwood lumber during the first Trump administration. .

“This is another bull’s eye, but one that we have to take seriously,” Dilkens said. “Especially in a city like mine, where we are the automotive capital of Canada. Detroit, just a kilometer away, is the car capital of Canada. the US, and our supply chains are so closely integrated.”

Trump’s announcement, made Monday evening on his Truth Social platform, promises a 25 percent tariff on goods from Canada and Mexico over his concerns about borders with both countries.

“This tariff will remain in effect until drugs, especially fentanyl, and all illegal aliens stop this invasion of our country!” Trump wrote on Truth Social.

“Both Mexico and Canada have the absolute right and power to easily resolve this long-simmering problem. We hereby demand that they use this power, and until they do, it is time for them to pay a very high price pay!”

‘Important to get Parliament on board,’ says MP Windsor West

The announcement prompted Windsor West MP Brian Masse to call an emergency debate in the House of Commons on Tuesday evening, citing the “mainly federal matters” Trump noted.

“It is of the utmost importance that Members of Parliament are involved in these deliberations,” Masse wrote.

Prime Minister Justin Trudeau will meet with Canadian prime ministers on the issue, after the prime ministers previously requested a meeting on the potential new challenges of a Trump administration.

“It will be very important to involve Parliament (also),” Masse said. “Tonight’s debate will be about getting to the heart of the difficult discussions we will have with the United States and raising public awareness of the challenges, the dangers and the obstacles we could face with this administration.

“We have a lot of risks here and it’s quite complicated. It will be like uncooking a plate of spaghetti. It’s very important that we understand the complexity of this.”

In response to Trump’s accusations that drugs are crossing the border, Masse says there are some legitimate criticisms — and that Canada can take action in response.

He says budget cuts to the Canada Border Services Agency under the Harper government have left the border short of 2,000 to 3,000 agents and have limited the agency’s ability to conduct proactive investigations.

“We used to have a more integrated capability across U.S. Border Patrol agencies. And so they did binational work on weapons and drug smuggling investigations… There are other issues related to the Great Lakes that have been criticized in the past that we weren’t doing. have sufficient support to monitor and patrol the Great Lakes.

“So there are a number of different operations that we can do to prevent smuggling from leaving our border into the United States before it happens. And that requires more agents, more law enforcement and more investment.”

Flavio Volpe is president of the Association of Auto Parts Manufacturers.

He warned people not to focus too heavily on the numbers and there are real risks for U.S. businesses from tariffs.

‘Not the diversion’ of Canadian interests from American interests

According to him, there are plenty of suppliers and companies that have their products cross the border several times, from raw materials to sub-components to end products.

“These are the companies that would be hit by a U.S. tariff,” he said. “So you see that there is no question of Canadian interest being withdrawn from American interest.”

Volpe says one of the keys is figuring out what Trump ultimately wants and recognizing Canada’s strength in those areas.

‘We can guess that he wants to abandon the EV mandates. He wants energy independence. Look, Alberta is going to win there. You’re going to try to fend off the Chinese. Well, you need all the aluminum you can get. And so Quebec is in there. And in the automotive space, we are so intertwined.

‘As long as we continue to pursue the same policies, whether trade policy or investment policy, as the Americans opposite China, we should be doing well too.”