A Century of Automotive Heritage

For over a century, the Lawton family has been deeply embedded in the Canadian automotive industry. Kathryn Lawton and her husband, Chad, both work for a car manufacturer in Windsor, Ontario.Windsor, separated from Michigan by only a bridge, is the heart of the Canadian automotive industry. Thier children represent the “fifth generation of Ford employees,” continuing a long-standing family tradition.

Trump’s Tariffs: A “Ridiculous” Claim

When former U.S. President Donald Trump suggested that Canada had stolen from the American automotive industry, Chad Lawton dismissed the notion as ridiculous. He emphasized that it has never been American jobs. It has always been Canadian jobs. These sentiments were shared as Trump’s duties came into effect, impacting Windsor, a city in southwestern ontario that found itself on the front lines of Trump’s trade war.

The Impact of Tariffs

Local factories now face a 25% tariff on cars produced abroad. This is reduced by half for cars with 50% or more components manufactured in the U.S. Additionally, there is a general 25% tariff on U.S. clients importing steel and aluminum. Further tariffs on automobile components are anticipated.

While many manufacturing companies have since departed, Windsor still hosts two Ford engine factories and a Stellantis plant, collectively employing thousands.

Industry Concerns and Potential Shocks

Laura Dawson, Executive Director of Future Borders Coalition, warns that these tariffs could cause significant shocks throughout the industry. She notes that if exports from Canada stop for more than a week, it will feel the whole continent.

Complex Regulations

the structure of American tariffs is complex. Each car component exceeding boundaries must be assessed for “qualified content,” considering its origin, labor costs, and the source of any steel or aluminum. Dawson explains, Every car component is literally under close scrutiny where and how it was made.

Political Responses in Canada

The American tariffs became a central issue in the Canadian parliamentary elections, with parties vying to support the automotive industry.

• Liberal Chairman Mark Carney, the current Prime Minister, pledged $2 billion (32 billion crowns) to support competitiveness and job protection, along with plans to build “all-in-Canada” automotive components.
• Carney also introduced anti-tariff measures for cars worth $35 billion (over half a trillion crowns), adding to previously announced reciprocal measures against the U.S.
• Conservative Chairman Pierre Poilievre promised to eliminate the tax on Canadian vehicle sales and create a fund for companies affected by tariffs to help retain employees.
• Jagmeet Singh, of the left-wing New Democratic Party, vowed to use every dollar from anti-tariff measures to support employees and prevent manufacturers from relocating to the U.S.

Local Perspectives

For factory workers, the tariffs are a bitter pill, especially given that the situation was initiated by the U.S., Canada’s closest ally.

The economy of Windsor heavily relies on cars and trade with the United States. Any weakening of this sector will affect everyone, from restaurants to charities.