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United States customs duties on the importation of cars and trucks would affect 160,000 jobs in the Canadian automotive industry, where 80 100 of the vehicles manufactured are exported, according to the industry.
Anticipated losses in the Canadian automotive sector include the negative effects that a likely retaliatory measure would have from the Canadian government
Brian DePratto, an economist at TD Bank, estimated that if the United States impose 10% tariffs on auto parts and 25% on auto imports, the Canadian economy would lose 0.4% of its gross domestic product (GDP).
The most visible in the province of Ontario, home to the automobile center and where 40% of its exports are manufactured goods, and No. v vehicles and auto parts destined for the United States.
"The loss of 0.4% of your national GDP might not be important, but for Ontario, it would be about 2.0%, which would be very
It has added that US customs duties on imports of cars and auto parts would imply the loss of [1 939] one in ten jobs in the sector in Canada and one on five in Ontario
The potential imposition of duties of up to 25%. US imports of cars and trucks would be "devastating" for Canada's manufacturing industry warned Dave Gardner, president of Honda Canada Inc.
"Car prices in the United States could be devastating for Canadian manufacturers, "he said
William Mitchell, professor of strategic management at the university. Toronto told Notimex that the imposition of automobile tariffs in North America in 19459004 would result in lower car sales in all three countries, Canada, the United States and Mexico.
Production decisions will not change much as production plans have relatively long horizons.
However, costs for consumers will increase and they will have fewer options to buy if they focus solely on the vehicles produced. in your country instead of having at their disposal a complete set of vehicles from the three countries.
A study by the University of British Columbia warned against the lack of agreement in the Free Trade Agreement of the L & # 39; North America (NAFTA) could mean a drop in the Canadian auto industry between 30 and 40%.
For the specific economist In the automotive sector of Keith Head, Trump's threat of imposing tariffs on the import of cars is a tactic to " increase the pain "and push the negotiators from Mexico and Canada to the table of NAFTA.
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