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TORONTO, Canada. (Notimex) .- Possible tariffs United States for the importation of automobiles and trucks would affect 160,000 jobs in the Canadian automotive industry where 80% of manufactured vehicles are exported, say industrialists and specialists.
Moreover, if the US administration Donald Trump decides to impose a 25% tariff on automobiles, trucks and auto parts, the Canadian dollar could fall. its current 75 cents at parity with the US dollar at 64 cents at the end of 2019.
Anticipated losses in the Canadian automotive sector include the negative effects of a likely retaliatory action by the Canadian government.
Brian DePratto, an economist at TD Bank, estimated that if the United States imposed 10 per cent 100 tariffs on auto parts and 25 percent Along with aluminum and steel, the Canadian economy would lose 0.4% of its gross domestic product (GDP).
The negative impact will be most noticeable in Ontario, where the auto center is located and where 40% of its exports are manufactured goods, particularly US vehicles and auto parts.
"The 0.4% loss of your national GDP might not be great, but for Ontario, it would be 2.0 percent, which would be very important," said L & # 39; economist, who recalled that 1.7 million Canadians were employed in the manufacturing sector in 2017, including 771,000 in Ontario.
He added that US import duties on automobiles and auto parts would result in the loss of one in ten jobs in the sector in Canada and one in ten. five in Ontario.
The possible imposition of tariffs of up to 25 per cent Sales of cars and trucks in the United States would be "devastating" for the Canadian manufacturing industry, warned Dave Gardner, president of Honda Canada Inc.
"US car rates could be devastating for Canadian manufacturers . William Lincoln, professor of strategic management at the University of Toronto, told Notimex that the imposition of tariffs on the North American auto sector would drive down car sales in all three countries, Canada, United States and Mexico.
Considering that production decisions may not change much in the first place because production plans have relatively long horizons.
However, "the costs for consumers will increase and there will be fewer options to buy if they focus only on the vehicles produced in your country instead of having a complete set of Mitchell's vehicles believe that the option for Ontario's new governor, Doug Ford, will be to stay close to the federal government, even though both are opposing parties.
He also suggested "Highlight the benefits of trade between the three countries and close collaboration with US industrialists, who will be affected by trade restrictions."
A University of British Columbia study warned against Lack of agreement in the Free Trade Agreement. North American trade (NAFTA) could lead to a drop in the Canadian auto industry by between 30 and 40%.
For automotive economist Keith Head, President Trump's threat to impose tariffs on the import of cars is a tactic to "increase the pain," and push Mexico's negotiators and Canada at the NAFTA table, whose negotiations will be relaunched In July
the auto parts company Magna International announced that it was planning to transfer its production to China through the intermediary of the company. a joint venture with Beijing Electric Vehicle Co, a subsidiary of Beijing Automotive Industry Holding, to operate a plant in Zhenjiang It manufactures 180,000 vehicles a year
. Its executive director, Don Walker, is worried about the high cost of doing business in Canada and Ontario in particular, where he has his factory. In this Canadian province, Magna employs 22,000 workers in 51 plants and is one of the companies that provides the most jobs in Ontario.
Walker emphasized the ability of the company, built in 1973, to manufacture conventional, hybrid and electric vehicles. China, which is facing serious pollution problems, has set a target for the year 2025 that 20% of its car sales are "green" energy vehicles .- (By Isabel Inclán)
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