Donald Trump’s proposed 25% tariff on Canadian and Mexican goods threatens Canada’s EV sector. Automakers warn that tariffs on cross-border components could raise vehicle costs and worsen inflation. Linamar chair Linda Hasenfratz highlights the cost impact of parts crossing borders multiple times.
With EV battery components heavily reliant on China, added tariffs may increase Canadian production challenges. Heather Exner-Pirot of the Business Council of Canada notes U.S. reliance on Canadian nickel and cobalt, critical for EV batteries, complicates Trump’s plan. Trade lawyer Sean Stephenson cautions retaliation under USMCA could take time, leaving uncertainty for Canada’s auto sector.
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