Ontario's Auto Industry Under Siege: Trump's Tariffs Hammer Canadian Plants

Strategic Insights -

Since US President Donald Trump announced plans to slap tariffs on imported cars, including those from Canada, three of Ontario's eight automotive assembly plants have announced changes, including thousands of layoffs, production cuts, and temporary shutdowns. A fourth plant, already down for retooling, has paused its refit, extending its closing well into next year. Trump's goal of killing Canadian auto production seems to be succeeding, at least for now.

Key Takeaways:

  • Since Trump's announcement, three Ontario automotive assembly plants have announced changes, including thousands of layoffs, production cuts, and temporary shutdowns.
  • A fourth plant, already down for retooling, has paused its refit, extending its closing well into next year.
  • The tariffs will cost automakers billions of dollars, driving up prices, reducing sales, and causing layoffs and production cuts at plants worldwide.
  • Canadian automakers GM, Ford, and Toyota have invested billions of dollars in the North American auto supply chain, which relies on open borders and tariff-free efficiencies.
  • Ontario auto production by Ford, General Motors, Stellantis, Honda, and Toyota totalled 1.3 million vehicles in 2024.
  • Honda and Toyota together account for 953,000 of the 1.3 million vehicles produced in Ontario, with plants in Alliston, Cambridge, and Woodstock.
  • The Brampton Stellantis plant, which had 3,000 workers on layoff, awaiting a refit to make Jeeps, has been paused since February amid head-office turmoil.
  • The Oshawa General Motors plant will eliminate one of three production shifts by the fall, laying off 700 employees.
  • The Ingersoll GM plant will close in May and reopen in October, eliminating about 500 of the 1,300 hourly jobs.

Statistics:

  • About 93% of the 1.3 million vehicles produced in Ontario in 2024 were produced by Honda and Toyota.
  • 55% of the 17 million vehicles bought in the United States in 2023 were assembled in the US.
  • 15% of the vehicles bought in the US in 2023 were assembled in Mexico.
  • 7 or 8% of the vehicles bought in the US in 2023 were assembled in Canada.
  • 500 of the 1,300 hourly jobs at the Ingersoll GM plant will be eliminated.
  • 700 employees will be laid off at the Oshawa General Motors plant.

Sources:

  • Eric Atkins, Staff, U.S. President Donald Trump's statements quoted in the article, May 6, 2024.
  • Ward's Automotive and Bank of Montreal, data on vehicle sales in the US in 2023.
  • Unifor local president Vito Beato, quoted in the article, June 2024.
  • Stellantis spokesperson Lou Ann Gosselin, quoted in the article, June 2024.
  • Professor Greig Mordue, quoted in the article, June 2024.
  • GM, Ford, and Toyota, statements on the impact of tariffs on their production and sales.