The Globe and Mail reports its Monday, Jan. 20, edition that U.S. president-elect Donald Trump's threat to impose a 25-per-cent tariff on all Canadian exports, if enacted, would be disastrous for automakers and particularly acute for the auto-parts industry. The Globe's Adam Radwanski writes that hundreds of Canadian companies directly employ about 100,000 workers, generating about $35-billion in annual revenue. They produce everything from assembly line equipment to engine components. The smaller they are, the greater the existential threat. The biggest players in Canadian parts making have certainly taken their hits already during the auto electrification journey. For instance, Linamar has put off plans to make EV frames at a new factory it is already building in Welland, Ont., after client demand dried up. Relocating to the United States would be far too expensive and time consuming to undertake based on tariffs that may only last weeks or months if they are imposed at all. Honda Canada's Ken Chiu said he could not speculate on the effect of Mr. Trump's policies. He says, however, that Honda remains committed to its current Canadian manufacturing and its plans for electrification production in Canada.
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