Despite ramping up production starting in June this year, the future of autoworkers in Durham – as well as elsewhere in Canada – looks bleak at best. US President Donald Trump threatened to impose a 25% auto tariff on any vehicle built in Canada and since the auto industry in both countries is closely linked, this will hurt the US and Canada. 85% of the GM’s Oshawa Plant production goes in the US; a large majority of parts are being imported from US, which means lost revenue/jobs in Canada and you guessed it… lost revenue/jobs in the US as well.
Perhaps even worse than the auto tariff is the fact that almost every day the message changes so trying to plan ahead is extremely difficult if not impossible. On top of that, the uncertainty may cause GM to delay their investment in their Canadian plant.
One thing is for certain: tariff-for-tariff (also known as a “trade war”) would not benefit anyone.