B.C.’s $17-billion auto industry prepared ‘as best they could’ ahead of U.S. tariffs
It’s estimated that B.C.’s auto industry is worth about $17 billion in economic activity and the impact of Canada’s retaliatory tariffs on the U.S. auto industry has yet to be felt.
The tariffs came into effect as of 9 p.m. on Tuesday.
“We’ve all been aware that something was likely coming for some time and all the manufacturers have been preparing the best they possibly can to load up with as many parts for the manufacture of vehicles,” Blair Qualey with the New Car Dealers Association of B.C. said.
“And dealers are doing the same thing, trying to make sure they have as many vehicles as they could get on their lots now that won’t be subject to tariffs, as well as parts that they think they’re going to need. So everybody’s been trying their best to mitigate as much as possible the tariff pain coming at us.”
The tariffs follow through on a commitment from Prime Minister Mark Carney to fight back against the U.S. levy of 25 per cent on Canadian-made vehicles.
The date on the tariffs was left blank while the impact of the tariffs were examined but on Tuesday, the Canadian government said they would go into effect on April 9.
Now, the value of the U.S. components of the vehicle not already compliant with the Canadian-U.S.-Mexico free trade agreement will be hit with an extra 25 per cent.
It might be some time before the full impact is felt for the consumer, as dealers will likely have some pre-tariff stock they can sell first.
“It depends on the manufacturers,” Qualey said.
“It depends on, you know, how much they’re willing to absorb in the early days of this, in terms of the impact of the tariffs. So how much of that will impact and for how long, it’s hard to say; some of it will be passed on.”
B.C.’s auto industry employs about 30,000 people.
The industry weathered the financial meltdown in 2008 and the COVID-19 pandemic.
But it remains to be seen how the industry navigates a trade war.
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