How Canada's auto sector can survive its terrible, no-good, very bad year [Globe and Mail, The (Toronto, Canada)]
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Source: Globe and Mail, The
With the U.S. trade war, the problems with Canada's economy have only gotten more visible, more numerous and worse. This series brings solutions. With the U.S. imposition of tariffs on automotive imports, the North American-based industry faces a reckoning: the dismantling of the free trade in vehicles and parts that has prevailed for decades. This will result in production inefficiencies and higher costs. That will impair the competitiveness of North American automakers against low-cost, high-quality manufacturers, notably from China. Friday's announcement of lower tariffs on Chinese electric vehicles add to the problem. Carney's tariff deal with China could risk auto-sector competitiveness, industry leaders say A huge challenge for Canada, absent a change in the U.S. administration's outlook, will be how to mitigate the consequences of this protectionist policy and forge a second-best outcome. The stakes cannot be higher. Canada's auto industry contributed $17-billion to t
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