Loading articles...

Auto tariffs seen by some as a 'lose-lose scenario' for Canada

New Ford Edges sit on a production line as Ford Motor Company celebrates the global production start of the 2015 Ford Edge at the Ford Assembly Plant in Oakville, Ont., on Thursday, February 26, 2015. New NAFTA rules could increase the cost of a car by hundreds or even thousands of dollars, act as a multibillion-dollar tax, and ultimately hurt sales as consumers keep their wallets shut, a new study predicts. THE CANADIAN PRESS/Chris Young

The U.S. president has been threatening tariffs on Canadian cars for more than a year now. But as NAFTA talks resume, experts seem to think Donald Trump has moved closer than ever to making the threat a reality. Yet still, a man not known for his patience hasn’t pushed the shiny red button. Why not? What do we need to understand about the single biggest sledgehammer wielded in US-Canada relations in decades?

Aaron Hutchins of Maclean’s takes us through exactly what happens if Trump makes good on his threat, and helps us understand just how tricky even something as blatantly simple as a blanket tariff can be when it actually takes effect on the ground. How bad would this be? And how would Canadians who don’t work in the auto industry end up paying for it if Justin Trudeau retaliates?

Today’s Podcast – Time NAFTA time

 

You can subscribe to The Big Story podcast on iTunes or Google Play.

You can also find it at thebigstorypodcast.ca.