Trump tariffs hard to navigate but Canada can take action, Windsor and auto leaders say
The U.S. president-elect has promised a 25 per cent tariff on Canadian goods
As leaders across Canada and in Windsor, Ont., sound the alarm over what a potential 25 per cent tariff imposed by president-elect Donald Trump would mean for the Canadian economy, they also say there are ways to handle it.
Windsor Mayor Drew Dilkens told CBC News Network Tuesday morning that he believes the promise might be a negotiating tactic aimed at launching discussions on the U.S. Mexico Canada (USMCA) trade agreement, which is up for review in 2026.
But, he said, it's also one he's taking very seriously.
"And so if that's the case, what can he do to be a disruptor in the short term that gets everyone to the negotiating table and gets them to the table fast. And this is one of those things that will get a lot of attention."
Dilkens, who was also mayor of Windsor during Trump's first term of office, called Trump's threat "a bit of a rinse, wash, repeat-that-cycle going on again," recalling conflicts over aluminum tariffs and softwood lumber during the first Trump administration.
"This is just another shot across the bow, but it's one we should take seriously," Dilkens said, "Especially in a city like mine where we are the auto capital of Canada. Detroit, just a kilometre away, is the auto capital of the U.S., and our supply chains are so tightly integrated."
Trump's announcement, made on his Truth Social platform Monday night, promises a 25 per cent tariff on goods coming from Canada and Mexico due to his concerns about borders with both countries.
"This tariff will remain in effect until such time as drugs, in particular fentanyl, and all illegal aliens stop this invasion of our country!" Trump wrote on Truth Social.
"Both Mexico and Canada have the absolute right and power to easily solve this long simmering problem. We hereby demand that they use this power, and until such time that they do, it is time for them to pay a very big price!"
'Important to get Parliament on board,' Windsor West MP says
The announcement prompted Windsor West MP Brian Masse to seek an emergency debate in the House of Commons Tuesday night, citing the "primarily federal matters" Trump noted.
"It is of the utmost importance that Members of Parliament be included in these deliberations," Masse wrote.
Prime Minister Justin Trudeau will meet with Canada's premiers on the issue, after the premiers had previously requested a meeting about the potential new challenges of a Trump administration.
"It's going to be really important to get Parliament engaged [as well]," Masse said. "Tonight's debate will be about getting to the heart of the difficult discussions that we have with the United States coming up and to get the public aware about the challenges and the dangers and the obstacles that we might have with this administration.
"We have a lot at risk here and it's pretty complicated. It's going to be like undoing a plate of spaghetti. It's really important that we understand the complexities of this."
Responding to Trump's allegations of drugs coming across the border, Masse says there are some legitimate criticisms — and actions Canada can take in response.
He says that cuts to the Canada Border Services Agency under the Harper government have left the border short 2,000 to 3,000 officers and cut the agency's ability to do proactive investigations.
"We used to have more integrated capacity with the U.S. border patrol agencies. And so they would do binational work with regards to investigations for guns, drug smuggling… There's other issues with regards to the Great Lakes where there's been criticism in the past of not having enough support to monitor and patrol the Great Lakes.
"So there's a number of different operations where we could stop the smuggling from leaving our border into the United States before it happens. And that would require more officers, more law enforcement and more investment for that."
Flavio Volpe is president of the Automotive Parts Manufacturers' Association.
He cautioned people not to focus on the numbers too heavily and there are real risks to American businesses as a result of tariffs.
'No extracting' Canadian interests from U.S. interests
He says there are plenty of suppliers and companies that have their products cross the border several times, from raw materials to sub-components to finished goods.
"These are the companies that would be affected by an American tariff," he said. "So you can see, there's no extracting the Canadian interest from the American."
Volpe says that one of the keys is to figure out what Trump ultimately wants and recognize Canada's strength in those areas.
"We can guess he wants to move away from EV mandates. He wants energy independence. Look, Alberta is going to win there. You're going to try to fend off the Chinese. Well, you need all the aluminum you can get. And so Quebec is in there. And on automotive here, we're so intertwined.
"As long as we keep the same policies, whether that's trade policy or investment policy, as the Americans vis-a-vis China, we should also be fine as well."
With files from Dale Molnar and CBC News Network