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Could Canada phase out the auto sector?
In a trade war where the goalposts and focus change by the day, U.S. President Donald Trump’s latest target appears to be Canada’s auto sector.
Takeaways:
1. phaseout would amount to a loss of one per cent of Canadian jobs, and additionally a disappearance of one per cent of the country’s GDP.
受影响1%人口1%GDP
2.In part, the Trump trade tactics appear to be a push for vehicle manufacturers to pack up Canadian assembly lines and move them to the U.S.
川普就是想让汽车业搬回去
3.Worswick’s article argued this may be an opportunity to reconsider the $43.6 billion in government incentives for electric vehicle battery plants.
1%的人口受影响,政府却花了大钱补贴,仅仅电动车就补贴了436亿
4.“It’s tough in automotive because the margins are so small that you can’t sell on either side of the oceans,” Volpe said. “But if the president of the United States is going to raise everybody’s price by raising tariffs everywhere around the world, he’s suddenly opening new markets for us.”
汽车配件业利润很低
In a recent Globe and Mail opinion piece, Chris Worswick, the head of the economics department at Carleton University, suggested this could be an opportunity to “phase out” Canada’s auto sector.
“I think we need to figure out where things are going with this tariff war before making any big decisions,” Worswick told CTV News. “And so what I’m suggesting is that, you know, maybe there’s another way to go here, instead of putting the money into bailing out companies.”