The Globe and Mail reports in its Saturday, April 19, edition that Canada's automotive industry needs to strengthen its domestic presence. The Globe's Adam Radwanski writes that there is hope U.S. President Donald Trump will lift the 25-per-cent tariffs on Canadian vehicles and parts, enabling trade to normalize. However, sector leaders recognize that uncertainty will persist throughout Mr. Trump's presidency, and trust in the long-standing Canada-U.S. manufacturing relationship may not return completely. This situation underscores the need for a strong industrial policy to enhance the resilience of Canada's automotive sector and reduce its reliance on the U.S. market. Former Unifor economist Jim Stanford remarked that we must envision an industry less reliant on the U.S. market while still connected to it. Given limited export potential, this would involve enhancing Canadian production's alignment with domestic interests, maximizing the value of vehicles made here and finding synergies with other Canadian industries.
After the April 28 election, the new federal government may explore various strategies, some hinted at during the campaign. None are quick fixes. The current crisis looms large for those in the industry.
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