The Liberals are pledging to build an “all in Canada” auto network to help protect Canadian workers from U.S. President Donald Trump’s trade war.
Liberal Leader Mark Carney unveiled his party’s plan on Wednesday for the country’s auto sector, which will create a $2-billion “strategic response fund.”
Speaking at an election campaign stop in Windsor, Ont., Carney said this money will protect the jobs of workers affected by Trump’s tariffs and “fortify the entire Canadian auto supply chain from raw materials to finished vehicles.”
“Our auto sector has always been there for our country, so in this time of uncertainty and need, Canada will be there for our auto workers,” he said.
Under the Liberal plan, Carney said his government would build an “all in Canada network for auto manufacturing components” to avoid having parts cross the border multiple times before final assembly, which he said was a “huge vulnerability” in a trade war.
Each time a tariffed item crosses the border, it is hit by the tariff that applies.
“So, what we need to do is build more of those autos and more of each auto right here in Canada,” Carney said.
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“In the new world, that will be an advantage that will help insulate us from President Trump’s trade threats and it will grow the economy right here in Windsor and across of western Ontario.”
During their election campaigns, the Conservative Party and the NDP have also vowed to fight back against Trump’s tariffs.
Conservative Leader Pierre Poilievre has proposed “dollar-for-dollar tariffs carefully aimed at maximizing impact on American companies while minimizing impact on Canadian consumers.”
He wants to “put all the tariff revenues into help for affected workers and businesses” and says the “government should not keep a dime of the new revenue.”
NDP Leader Jagmeet Singh has called for “dollar-for-dollar retaliatory tariffs in place urgently, a 100 per cent tariff on Elon Musk’s Teslas, and changes to procurement so Canada buys Canadian-made steel and aluminum for Canadian construction and manufacturing – protecting good, Canadian jobs.”
The Liberals are also committing to speed up approval for projects by eliminating duplicative federal requirements and buy Canadian vehicles to support the domestic sector.
Earlier this month, Trump imposed 25 per cent tariffs on all steel and aluminum imports from Canada and America’s other trading partners, in addition to the sweeping 25 per cent tariffs — and 10 per cent on energy — imposed on Canada at the start of March.
Global Automakers of Canada said tariffs on steel and aluminum will only make vehicles that are built in the U.S. more costly for Americans.
Meanwhile, Trump has given a month-long exemption on tariffs on vehicles and products that are traded under the Canada-U.S.-Mexico Agreement (CUSMA), but the overarching 25 per cent tariffs on Canada and the 25 per cent steel and aluminum tariffs still apply to most products.
Global “reciprocal” tariffs are still planned for April 2, which seek to match tariffs put on U.S. goods by other countries.
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Carney pledges ‘all in Canada’ auto network amid tariff threats
