The Globe and Mail reports in its Saturday edition that President Donald Trump's plans for Canada's auto sector are clear: He aims to "crush" vehicle manufacturing here, imposing a 25-per-cent tariff on imported cars and light trucks. The Globe's Jason Kirby writes that this strategy reflects a desire for the U.S. to dominate auto production on the continent, prompting alarm across Canada's political and industrial landscape. Federal Liberal Leader Mark Carney has labelled these tariffs a "very direct attack." Economists believe the plan will increase costs, limit consumer choices and disadvantage domestic automakers compared with international competitors. Despite this, Canada's auto sector may continue to decline amid ongoing trade tensions, following a trend of reduced dependence on vehicle production. Australia's passenger auto industry vanished last decade with less impact than expected. While vehicle and parts production contributes less than 1 per cent to Canada's GDP and job market, losses in Southern Ontario would significantly affect communities that have relied on the industry for middle-class jobs.
To hear Mr. Trump tell it, snatching auto production away from Canada is as simple as flipping a switch.
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