Impact of Trump tariffs will leave no industry unscathed in Windsor-Essex, chamber says
Our 'best friend' has essentially declared 'economic war,' chamber of commerce says
The automotive, agriculture and manufacturing industries in Windsor-Essex will be hit hard and fast by Trump's tariffs on Canadian goods, but if these penalties stick around, ultimately every business and sector in the region is going to feel it.
That's the dire message from Ryan Donally, the CEO and president of the Windsor-Essex Regional Chamber of Commerce, who's hoping cooler heads will prevail after Trump announced 25 per cent tariffs on Canadian goods.
"There's not a single industry that won't be affected, and this is a very scary time for all of Windsor-Essex and all of Canada," he said on Sunday.
While Windsor-Essex is well known as Canada's auto capital and a major manufacturing hub, it also has the largest concentration of greenhouse vegetable growers in North America.
Donally says all of these industries will face the consequences of the tariffs, then industries that support them, like logistics providers, will suffer. Eventually, the effects will trickle down to small businesses like insurance companies and chriopractor's offices, he says.
Windsor Mayor Drew Dilkens says tens of thousands of jobs are on the line.
"The effects will be quite dramatic here," Dilkens, who chairs a group of border city mayors, told CBC's Rosemary Barton on Sunday.
Dilkens said he's worried about preserving investments like the NextStar electric vehicle battery plant, the first EV battery factory in Canada.
"None of this makes any sense to so many of us. We hope bright minds prevail, and I'm certainly going to fight for my community and make sure we're doing all that we can to preserve the jobs and the investments that we have realized that have benefited, and will benefit, the United States as well."
Dilkens said he's looking to other levels of government to extend supports if necessary, which could look similar to what was offered during COVID-19.
Tariffs to take effect Tuesday
Trump's 25 per cent tariff on goods from Canada starts on Tuesday. Trump wants to see the American trade deficit with Canada shrink, and he's also claimed the tariffs are a consequence of the illegal flow of fentanyl and people across the border.
In response, Canada has launched a tariff barrage of its own, with 25 per cent tariffs on $30 billion worth of American products. In three weeks, the tariffs will apply to another $125 billion worth of U.S. imports.
Prime Minister Justin Trudeau said American alcohol, vegetables, clothing, shoes and perfume will be among the first items to face Canadian retaliatory tariffs. Canada will also put tariffs on American consumer products such as household appliances, furniture and sports equipment.
Meanwhile, Ontario Premier Doug Ford is banning U.S. booze from the LCBO, one of the world's biggest purchasers of alcohol.
Donally says he supports the actions taken by governments.
"This was an economic war that was started by what was our best friend, a neighbour, ally... and largest trading partner and the Trump administration has essentially declared economic war on us. So, my message up the 401 (highway) is, continue to fight for Canadians."
The chamber is convening a task force of industry leaders on the issue on Monday, Donally says.
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With files from Pratyush Dayal and JP Tasker