Harmful U.S. tariffs on auto industry must not undermine Canada’s commitment to EVs

TORONTO, ON — ADAM THORN, director of transportation at the Pembina Institute, made the following statement in response to U.S. tariffs on automobile and automobile part exports.

“Canadian auto workers and manufacturers face serious uncertainty with U.S. tariffs on vehicles and auto parts set to take effect April 3. These tariffs will put thousands of jobs at-risk, drive-up costs and make it harder for Canadian businesses to compete.

“Workers and businesses across Canada will feel the effects. Higher manufacturing costs will mean fewer orders, reduced production and, ultimately, job losses. This uncertainty has been growing, with Canadian car manufacturers warning that they may have to freeze hiring or cut jobs if tariffs take effect.

“But now is not the time to lose faith in this industrial sector of tomorrow. Canada has been working hard to build up its EV sector — and that transition is good for the economy. Canada has everything it needs to compete globally: a highly skilled workforce, a reliable supply of clean electricity that manufacturers need and abundant access to the critical minerals essential to the transition.

“By continuing to invest in our strengths, we can secure long-term economic growth, attract more business and ensure Canada remains a key player in the future of the auto industry — which will be electric.

“The tariffs may threaten this progress — for manufacturers and consumers. But we must stay the course.

“The success of Canada’s auto and EV sector depends on the choices we make today. Canada should not let this unwarranted trade dispute slow our transition to cleaner, more affordable vehicles. Governments have already recognized the need to protect Canada’s auto sector, supporting workers and strengthening supply chains. Staying the course on policies that have successfully encouraged EV adoption and benefited the economy will be critical to keeping Canada competitive in the global auto industry, attracting continued investment and helping build a strong, resilient and autonomous Canada.”

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