Auto tariffs could cost Canada 160,000 jobs, TD estimates

June 20, 2018

Tariffs on cars and car parts could push loonie to 64 cents US by end of next year, too

Donald Trump's threat to slap tariffs on Canadian cars and car parts could cost the country up to 160,000 jobs, especially if Canada retaliates, TD Bank warns.

In a report Monday, senior economist Brian DePratto crunched some numbers on the economic impact of a 10 per cent tariff on car parts, and a stiffer 25 per cent levy on fully assembled vehicles.

Those numbers aren't just pulled from thin air. They're the exact tariff levels the Trump administration recently implemented on aluminum and steel, and DePratto assumes a similar breakdown is a decent base-case scenario to work from, with 10 per cent on car parts, and 25 per cent on more high-value fully assembled vehicles.

His analysis also assumes that Canada would respond with some sort of tariff on U.S. cars and car parts, just as it did with metals...

This was excerpted from the 19 June 2018 edition of CBC News.

Topic(s)

International Trade and Border Management

Information source

Canadian News Channel

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