Trump’s punishing tariffs on Canadian exports. And Canadian workers have paid the price.

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2023-02-19
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Two weeks ago, automaker Stellantis announced plans to move Jeep Compass production from a Brampton, Ontario, plant to Illinois. 3,000 jobs will be lost. In Ingersoll, Ontario, GM halted production of electric vehicles, laying off hundreds of workers. Truck manufacturer Paccar Inc. then announced that 300 workers would be laid off at its plant in Sainte-Thérèse, Quebec.

This is just the beginning. Oshawa’s GM assembly plant will scale back production starting this fall, with 700 to 1,000 layoffs hitting Canadian workers.

This wreckage is a direct result of Trump’s 25% tariffs on Canadian automobiles exported to the U.S., as well as his new 25% tariff on heavy-duty trucks. Corporations with the ability to do so are shifting production to the U.S., leaving Canadian workers in the dust.

Carney seems to have thought that generous government funding would be enough to keep production in Canada and out of the U.S. Many of the multinational corporations now leaving Canadian workers high and dry have been the recipients of major moolah from the governments of Canada and Ontario. These funding packages were designed to convince those companies to keep jobs here rather than moving them to Illinois or Alabama or wherever.

Stellantis, for example, has cashed in on the Liberal government’s naivety. The federal government gave Stellantis $105 million to retool two Ontario plants, only to see the company take the money and run.

That’s in addition to another $529 million the feds forked over to Stellantis in 2022 to help the corporation modernize its plants so they could produce more electric vehicles — for which demand has plummeted.

Now, it’s clear the Liberals made a bad bet and have lost the farm. In response, Quebec ministers Mélanie Joly and François-Philippe Champagne have promised they will be re-examining the deals they inked to see if they can sue Stellantis’ pants off to recover some of the hundreds of millions of taxpayers’ dollars they’ve lost.

It’s doubtful they can recover a nickel. But even if they can: so what? The jobs that those dollars were meant to protect are gone and unlikely to ever return.

That’s an easy promise to make. But the things that must be done to achieve it are much harder.

For example: Does Carney support a new pipeline from Alberta to the B.C. coast to get Canadian energy products to tidewater? He won’t say, despite such a pipeline being crucial to boosting exports to non-U.S. countries.


作者: — Royce Koop is a professor of political studies at the University of Manitoba, and a guest writer for the Winnipeg Sun.
 
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