A new report from the Canadian Imperial Bank of Commerce (CIBC) has revealed that if the US implements a 25% tariff on vehicles imports, industry exports from Canada could fall by as much as 900,000 units annually.
The Trump administration has continued to threaten the imposition of such tariffs, alongside a 10% auto parts tariff, in the aim of bolstering the domestic manufacturing industry across the US.
According to Toronto Dominion (TD) Bank, that similarly highlights the dangers of such tariffs, as many as 160,000 Canadian jobs could be lost as a result of this.
Currently, only 10% of the two million cars made in Canada are sold in Canada, outlining the importance of international markets to the Canadian auto industry.
Canada would then likely be forced into a corner where it might retaliate proportionally against the US in the aim of trying to raise domestic auto purchases within Canada, furthering the existing trade war between the two countries.