CADA's Chief Economist Michael Hatch (left) and Director of Public Affairs Huw Williams (right) present an analysis of potential automotive tariffs in a report put out by CADA at a July 6, 2018 press conference.
Report outlines massive job losses in US trade spat
July 16, 2018
A new report released July 6, 2018 by the Canadian Automobile Dealers Association warns that as many as 100,000 jobs could be at risk in a worse-case scenario automotive trade escalation with the United States. “What we are facing is nothing less than existential for our industry,” said Michael Hatch, Chief Economist for the Canadian Automobile Dealers Association.
“The type of tariff under contemplation in the U.S. and any possible retaliation by Canada would be catastrophic for the industry, our economy, and the Canadian consumer. While impacts on both sides of the border will be significant, U.S.-imposed tariffs will leave American consumers saddled with the biggest price by far – bringing them significantly higher vehicle prices and compromised supply. It is our view that the current escalation of trade threats between Canada and the U.S. in the automotive sector represents the biggest threat since the 2008-2009 recession, and likely with a much bigger downside.”
CADA, in addition to releasing these numbers, is calling on the government to provide immediate support to any impacted industries and consumers, specifically through a sales tax exemption on new vehicles and a robust vehicle scrappage program aimed at replacing old, dirty vehicles with new ones.
“We cannot hope to control the actions of any foreign government, but we can control what we do here at home. Though this is a challenging time for consumers, firms and lawmakers, it also represents an opportunity to enact economic reforms that are badly needed in Canada, such as a breaking down of internal trade barriers and tax simplification. Now is the time for bold action in some policy areas that have been neglected for too long,” concluded Hatch.
To read the report in full, please click here.