Donald Trump threatens to close the Canadian car sector to the sound of duties, but the risk for the White House is that of a boomerang effect. To pay the price of the rates, in fact, they will be above all American and Japanese car manufacturers, those who have plants in Canada. While, on the European source, Volkswagen announced in 2023 that he would build the first electric car battery system in Ontario: production is expected to start in 2027. Canada, as well as Mexico, is an integral part of North American automotive production since the beginning of 1900.
Relations with American manufacturers have strengthened over the years, so much so that Ottawa during the great recession of 2008 contributed together with the United States of Barack Obama to the task force that accompanied and emerged from the General Motors and Chrysler bankruptcy. In 1904 Ford opened Ford Motor of Canada in Ontario in Windsor, the city separated only by a river from Detroit, the capital of the American car. Chrysler also chose Windsor as his Canadian base. Ford has assembly and engines systems in Canada, and is therefore exposed to Trump’s duties.
His CEO Jim Farley said last month that the rates would be “devastating” for American car manufacturers. General Motors has research centers in the country, the distribution of components and assembly. Stellantis in Canada has 8,845 employees (company data in January 2024) and three manufacturing systems (Windsor, Brampton and Etobicoke). The presence of Japanese car manufacturers is also significant. Toyota has three plants in the country, while Honda produces to Alliston. The Japanese giants import in the United States from Canada and Mexico about 1.6 million cars per year and an increase in duties, according to analysts, could drop the 2025 sales volume of 12%.
Trump’s threat: “I will close the car sector”
In response to the duties of 25%on the “electricity” imposed by the incoming Ontario, “I commissioned my secretary to the trade to add an additional rate of 25%, thus reaching 50%, all over the steel and aluminum coming to the United States from Canada”. So President Trump on Truth. The new 25% duty on aluminum and steel will come into force tomorrow, March 12th. “In addition – Trump warned – Canada must immediately eliminate its rate on various dairy products, which is scandalous and damages farmers Americans “https://gazzettadodelSud.it/articoli/mondo/2025/03/11/trump-dazi-del-50-sulcciaio-e-lalluminio-dal-ca-e-mi Naccia-Farus-Chil.Il-Sper-car-to-the-Land-In Meeting-of-Nuovo -zeky-32154311-42b3-4896-8a71-480f727189ec/. “If Canada will not eliminate its rates against us I will substantially increase, on April 2, the duties on cars coming to the United States, which, essentially, will definitively close the car production sector in Canada “. It is the warning of the US President.
Europe closes in strong decline with Trump’s duties
The European bags close in strong decline, in the wake with Wall Street after the threats of Donald Trump on the duties to Canada. The main price lists of the old continent are weighed down by the car sector and the pharmaceutical. On the currency front, the euro is strengthened at 1.0927 on the dollar, taking the levels of July 2024. Red closure for Paris (-1.31%), Frankfurt (-1.29%) and London (-1.21%).
European bags burn 279 billion with Trump’s duties
The words of Donald Trump on duties and threats to Canada fall like a dark on European bags. The Stoxx 600, the share index that collects 600 of the main European market capitalizations, records a 1.7% drop and sends 279 billion in smoke. In Piazza Affari the drop in 1.38 of the FTSE MIB price list leads to burn 12.52 billion.
Trump will again invite Zelensky to the White House
Donald Trump said he will invite Ukrainian President Volodymyr Zelensky to the White House again. This was announced by the same American president, according to the Bloomberg agency.