U.S. President Trump's imposition of a 25 percent tariff on virtually all Canadian imports is expected to have significant repercussions for businesses in Toronto and surrounding areas. The tariffs, announced on Saturday, are aimed at pressuring Canada to take stronger action against the flow of fentanyl into the U.S. and will impact various sectors, including the auto industry, energy, and agriculture.
U.S. President Donald Trump's trade war against Canada could result in job losses and reduced spending in Toronto and its surrounding regions, according to an expert. Trump is implementing a 25 percent tariff on virtually all goods from Canada , as revealed by a senior Canadian official who shared the details with CBC News on Saturday. This move signifies a significant escalation in the trade dispute.
The tariffs, which are expected to take effect on Tuesday, are aimed at pressuring Canada to take more stringent measures to curb the flow of fentanyl into the United States. They encompass a 10 percent tariff on Canadian energy products and will apply to car parts and semi-assembled cars every time they cross the Canada-U.S. border. Unlike the tariffs imposed on Canadian aluminum and steel in 2018, these are 'across the board tariffs' that will impact the auto industry, stated Peter Morrow, an associate professor of economics at the University of Toronto. Automobile factories in southern Ontario, such as the GM Oshawa Assembly plant, the Oakville Assembly Complex owned by Ford Motor Co., and the Brampton Assembly Plant operated by Stellantis, could face repercussions. Morrow emphasized that the American and Canadian auto industries are 'basically one transnational industry,' with parts and unfinished cars constantly moving between the two countries. 'A tariff will hit those parts and those semi-assembled cars every time they hit the border. It's not going to be a one-time thing,' he explained. The impact of the tariffs could be immediate, with the Canadian dollar potentially losing value. Morrow predicts that over the next month or so, temporary layoffs and reduced spending are likely.Local produce industries could also be affected, Morrow noted, citing farms in Leamington, Ont., that export peppers to the Midwest. Restaurants might find it more challenging as consumers have less disposable income. The potential rise in grocery prices depends on how the Canada–U.S. exchange rate is impacted by these tariffs, as well as any retaliatory tariffs from the federal government that make American goods more expensive.In response to this trade war, one Toronto pizzeria has decided to boycott American products indefinitely. Graham Palmateer, owner of Gram's Pizza in the Junction Triangle, stated that he made this decision over the past few weeks, anticipating the U.S. tariffs on Canada. Palmateer confessed that some of his favorite pizza ingredients are American, including California tomatoes and pepperoni made south of the border. He also previously sold American-made beverages. 'I won't be stocking any of these items for the foreseeable future, and will seek out alternatives from Canada and elsewhere,' he said, adding that he has stopped using Costco as a distributor.Palmateer's boycott announcement, made via an Instagram post last week, has received an overwhelmingly positive response. Another business has expressed interest in adopting a similar boycott, he revealed. Morrow suggested that buying domestically produced goods could help offset the impact of tariffs on Canadian jobs. However, he cautioned that this might not be 'pain free' as these products could be more expensive.
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