After a turbulent week, auto industry takes a breath as tariffs paused — for now

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This article was published 07/03/2025 (237 days ago), so information in it may no longer be current.

WINDSOR, ONT. AND TORONTO – Canadian auto workers and the industry are catching their breath after a roller-coaster week that saw crushing tariffs imposed, then paused, as they wait for the next round of threats. 

Mohammad Thraya, who works at Stellantis’ Windsor Assembly Plant, says the mood in the plant is changing daily but there’s a little less anxiety with the pause.

“When the tariffs were about to hit, everybody was a lot more anxious than when they said, OK, automotive is exempted,” said Thraya on Thursday evening.

“You can see in everybody’s faces that it’s less stressful for them.”

The U.S. Trump administration announced Wednesday, just a day after imposing sweeping tariffs, that it was exempting the auto sector until April 2. 

While the pause gives some immediate respite, industry leaders have said the flip-flopping on what would be devastating tariffs for the industry means little has changed with the threat still overhanging.

Unifor national president Lana Payne said the exemption doesn’t really change anything and just means another month of instability. 

The union’s auto council and independent parts council, representing 37,000 autoworkers in Canada, held an emergency meeting Thursday to discuss the threats.

In a joint statement, they urged the federal government to stand firm on its aggressive responses, including counter-tariffs. In a nod to what’s at stake, they also called on the Canadian governments to be prepared to stop the export of any machinery bought by automakers with public funds.

“This is the fight of our lives. We’re going to have to lay it all on the line and be prepared to do whatever it takes,” Payne said in a statement.

“Our members have been living under economic warfare by the president of the United States. The threats grow by the day, the goalposts move by the day, and every day brings chaos. Trump’s plan from Day 1 is to steal investment and jobs from this country,” said Payne. 

The threat of layoffs is top of mind for workers. Even a slowdown in sales, whether from rising costs or uncertainty or supply chain issues, could mean cuts.

“Slow sales means slowdown in production. A slowdown in production means there’s no need to show up to work,” said Jose Velasquez, who also works at the Windsor plant.

He said while he’s close to retirement, he’s especially worried for more junior staff who have kids and a mortgage to cover.

“I can’t imagine, you know, the impact of losing a job with those young guys.”

Auto-parts executives have been clear that if tariffs come in, it will likely mean a shutdown of operations. 

Linamar Corp. chief executive Linda Hasenfratz said Wednesday that tariffs, especially if aluminum and steel tariffs are layered on top, would mean billions of dollars in extra costs for their customers and likely shut the industry down.

Those metal tariffs, as of Friday, are still set to come in on March 12.

But while there’s still the threat of more tariffs and uncertainty on the horizon, some are hopeful that Trump sees the damage they’d do. 

Thraya in Windsor said he feels like the industry will at least keep getting extensions, just because of how much of an impact the industry has on both sides of the border.

“I’m optimistic,” he said.

“I just have a feeling that it’ll pan out where, you know, it won’t have a drastic effect on this plant.”

This report by The Canadian Press was first published March 7, 2025.

Note to readers:This is a corrected story. A previous version said the U.S. had exempted the auto sector from tariffs on Thursday. In fact it was Wednesday.