The Financial Post reports in its Friday edition that the Trump administration's ongoing changes to tariffs have left businesses scrambling to manage new costs, apply for exemptions and consider reorganizing supply chains. The Post's Gabriel Friedman writes that the message from automakers has been clear: consumers are not going to purchase vehicles if the price goes up, so find ways to keep costs stable. The new tariffs, which President Donald Trump has said are to help force companies to build plants in the U.S., strike at the foundation of Windsor's economy. In Mr. Trump's White House press conference about the auto tariffs, he said investment is already pouring into the U.S.
Many economists, however, doubt that the tariff will achieve the intended effect. Auto-manufacturing plants take years to build and cost hundreds of millions, sometimes billions, of dollars and are generally planned for years before investment decisions are made. Economist David Rosenberg said in a newsletter on Thursday, "One can easily see a 30 per cent downward shift in U.S. auto sales in the coming months and quarters and the hit to output and employment will come far in advance of any potential shift in factory production to the U.S."
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