U.S. President Donald Trump’s threatened tariffs on Canadian goods would severely disrupt the Canadian automotive sector where trade is balanced, said a report out Tuesday from TD.
Trump has said he plans to impose 25 percent tariffs on Canadian and Mexican goods as soon as Saturday over what he calls concerns about the trade deficit, along with border issues, and also suggested that U.S. automakers should build their vehicles in Detroit.
The tariffs, and any retaliation from Canada and Mexico, would mean higher prices, and the upwards of US$50 billion it would cost to move production back to the U.S. would push prices higher still, said TD economist Andrew Foran in his report….