Ottawa preparing response if Donald Trump follows through with U.S. auto tariffs threat – National


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OTTAWA – With threats of devastating U.S. tariffs hanging over the auto sector, Canada’s financial growth minister says Ottawa is contemplating each doable manner it may reply if the Trump administration follows by on its warning.

Navdeep Bains mentioned Plan A is to proceed encouraging the U.S. to again away from the tariff risk, which business has warned would inflict important injury on each nations’ economies.

READ MORE: U.S. President Trump threatens auto tariffs in opposition to Canada if commerce talks fail

However simply in case they’re utilized, Bains mentioned Ottawa is contemplating “each conceivable choice.”

“We’re taking nothing off the desk at this stage,” Bains mentioned in an interview. “We’re taking a look at each device in our toolbox.”

WATCH: Morneau says U.S. has ‘invalid’ motive for imposing metal tariffs

Bains declined to share specifics when requested about potential business assist in Canada or retaliatory actions in opposition to the U.S., nevertheless, he famous how Ottawa took a number of steps to reply to American metal and aluminum duties.

Earlier this summer time, Ottawa utilized retaliatory tariffs on $16.6-billion value of U.S. imports of metal, aluminum and different merchandise. It additionally introduced a monetary help bundle for industries caught within the crossfire, together with as much as $2 billion in new funding and assist for staff in metal, aluminum and manufacturing sectors.

Levies, nevertheless, on the crucial auto business would have far larger impacts on Canada’s economic system – and would possible name for a far higher response.

“I don’t wish to get into the hypothesis recreation, all I can guarantee you is that we’ll proceed to assist the employees and we’ll proceed to assist the business as we’ve performed so previously,” mentioned Bains, who added that the federal government first must genuinely perceive what the tariffs would seem like and the way they’re utilized.

READ MORE: ‘Canada should wait’ on commerce deal, however Mexican one is coming properly, Trump says

“We take nothing as a right, we’re doing our due diligence, we’re doing our homework.”

U.S. President Donald Trump has made repeated threats – together with one late final week – that he would slap Canada with auto tariffs. In a tweet that appeared to reference NAFTA’s ongoing renegotiation, Trump wrote that the “cope with Mexico is coming alongside properly” and that “Canada should wait.”

WATCH: Ottawa publicizes “safeguards” for Canada’s metal business

Trump then despatched a warning to Ottawa: “Their Tariffs and Commerce Obstacles are far too excessive. Will tax vehicles if we are able to’t make a deal!”

Ottawa has been on the NAFTA sidelines for a fourth straight week whereas it awaits the completion of one-on-one talks on the deal between the U.S. and Mexico.

Bains mentioned Canada has been presenting its case to the U.S. administration, state governors and different American lawmakers in regards to the adverse penalties of the tariffs on the extremely built-in auto business for each nations.

Final month, Canada’s deputy ambassador to Washington, Kirsten Hillman, delivered a message throughout testimony at U.S. Commerce Division hearings that Ottawa would retaliate with auto tariffs of its personal.

The Commerce Division is investigating whether or not the duties ought to be utilized primarily based on the premise that auto imports from Canada pose a nationwide safety danger to the U.S., an thought Ottawa has rejected.

READ MORE: Canadian exports hit report excessive in June however U.S. tariffs on metals slashed metal, aluminum shipments

To assist work out Canada’s potential responses, Bains mentioned he’s spent a lot of his summer time listening to the auto business. The method included a convention name Wednesday with the Canadian Automotive Partnership Council, which has a membership that features CEOs of the nation’s 5 auto assemblers and of its main elements suppliers in addition to representatives from labour unions, academia, supplier associations and business ministers from Ontario and Quebec.

Council member Jerry Dias, president the nation’s largest private-sector union, mentioned the federal authorities has been signalling it will do one thing “significant instantly to shore up the businesses” in response to U.S. auto tariffs.

WATCH: Imposing tariffs has ‘sophisticated’ impact on shoppers, producers

Dias expects a federal bundle to incorporate many elements, akin to incentives, work-sharing applications and assured loans.

“Individuals are nervous,” he mentioned, including it will be “extremely problematic” if Trump moved forward with the tariffs. Dias, nevertheless, isn’t satisfied Trump will comply with by due to how a lot injury the levies would trigger to the highly effective U.S. auto sector.

Political opponents say Ottawa must do a greater job of serving to individuals and companies affected by U.S. tariffs already in place.

Tracey Ramsey, an NDP MP from Windsor, Ont., says she’s heard from many individuals who’ve had a tricky time navigating authorities businesses as they seek for key info, akin to making use of for tariff exemptions and for help underneath the $2 billion value of assist promised by Ottawa.

Earlier this week, the opposition New Democrats referred to as on the Liberals to create a nationwide activity pressure on tariffs that might streamline the method by making a single authorities portal.

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