Ontario Premier Doug Ford is vowing to keep U.S. alcohol off LCBO shelves and to continue fighting for “zero tariffs” after Canada was spared from additional levies.
U.S. President Donald Trump signed an executive order slapping varying “reciprocal” tariffs on dozens of countries on Wednesday but an exemption for goods that are compliant with the existing North American trade pact between Canada, the United States and Mexico was kept in place.
Trump, however, did confirm a 25 per cent tariff on all imported vehicles that takes effect today.
It is expected that vehicles manufactured in Canada will eventually be subject to that tariff but will be taxed at a lower rate based on the percentage of parts which are foreign-made.
Speaking with reporters following a virtual meeting with Prime Minister Mark Carney and other premiers on Thursday morning, Ford said that while it was a “big relief” for Canada not to be included on a list of countries facing “reciprocal” tariffs it is important to remember that previous tariffs “haven’t disappeared.”
The U.S. rolled out a 25 per cent tariff on steel and aluminum last month. Most Canadian goods which fall outside of the Canada-United States-Mexico Agreement (CUSMA) also face a 25 per cent tariff.
“We (the premiers) all agreed that we got the best of a bad deal which in my opinion is still totally unacceptable. The only thing that is acceptable is zero tariffs. We are going to continue targeting zero tariffs,” Ford said.
Ford spoke with reporters before a news conference was held by Carney, where he announced a 25 per cent counter-tariff on U.S.-made vehicles.
During his availability, Ford did indicate that Ontario would support such a measure and added that the province would work to support auto workers “every which way we can,” though he did not provide specifics.
“I do believe and I would support retaliation tariffs very similar to what they have against us in the auto sector but that is strictly up to the Prime Minister,” Ford said. “I am a strong supporter of showing the U.S. that we negotiate through strength and not through weakness but it will be up to the Prime Minister to tell the country how we are going to retaliate.”
Tariffs on vehicles ‘clear as mud’
Ford told reporters that while the tariffs on vehicles are “clear as mud” it is his understanding that levy will only be applied on the portion of vehicles that are made up of foreign parts.
That could, in turn, cut the tariff in half in many cases, Ford suggested.
The tariffs are, nonetheless, are already having a chilling effect on the heavily integrated North American auto industry with Stellantis announcing plans to shutter its Windsor Assembly Plan for the next two weeks and another plant in Mexico for longer.
Stellantis has also said that about 900 employees at some of its U.S. facilities will be temporary laid off as a result of a pause in production at the two plants.
Speaking with reporters, Ford said that the job losses underline the real pain that is going to be felt as a result of Trump’s tariffs.
“I thought it would last about a week (before assembly lines shut down) but obviously it is right down to days now on the supply chain,” Ford said. “I have been saying this over and over again. A tariff on Canada is a tax on Americans. This is just one company, one sector not to mention all the other sectors.”
Retaliatory measures will remain
Ontario has taken a number of retaliatory measures in response to the U.S. tariffs, including pulling U.S, alcohol from LCBO shelves and banning American companies from approximately $30 billion in provincial contracts.
On Thursday Ford was asked about those measures and said they would remain in place.
Toronto Mayor Olivia Chow also said that the municipality would keep its retaliatory measures in place following an unrelated appearance at a downtown Toronto hospital.
Those measures include changes to the city’s procurement rules which make it so only Canadian companies are permitted to bid on city construction projects worth less than $8.8 million. Contracts for goods and services under $353,300 are also reserved for Canadian suppliers.
“President Trump needs to end this senseless trade war,” Chow said. “The tariff on auto steel and aluminum and so on is going to affect 125,000 Ontarians so the City of Toronto will continue to encourage people to buy local and shop Canadian.”
