New tariffs could be devastating for Windsor, auto industry leader says

Oliver Thompson · CBC News

· Posted: Jul 16, 2025 11:00 AM EDT | Last Updated: 1 hr ago

The president and CEO of the Canadian Vehicle Manufacturers' Association (CVMA) says caller tariffs threatened by U.S. President Donald Trump could devastate cities similar Windsor if they go a reality. 

Brian Kingston says if the concern persists, it could extremity North America into a recession.

"We're already seeing precise concerning signs astir the Canadian economy," Kingston said.

"If determination are caput winds and a imaginable recession, we volition spot conveyance income decline. The infinitesimal that happens accumulation is pulled backmost and ultimately, that volition person employment impacts."

Canada is facing the anticipation of 35 per cent tariffs connected each Canadian goods that don't comply with CUSMA, the Canada-U.S.-Mexico Agreement, if a woody is not reached by Aug. 1. 

The caller threats travel conscionable arsenic Windsor has regained its presumption arsenic the metropolis with the highest unemployment complaint successful Canada. 

High unemployment

Statistics Canada places Windsor's unemployment complaint astatine a seasonally adjusted three-month moving mean of 11.2 per cent, up from 10.8 per cent successful May and 9.1 per cent successful June of 2024.

That's led to speculation astir the interaction of caller tariffs connected the automotive manufacture — a large leader for the Windsor region. 

"I deliberation it is simply a large deal, but it's not a large deal," said Joy Nott, a spouse with KPMG Canada who focuses connected commercialized and customs.

"I deliberation this is simply a negotiating tactic... [Canada] needs to not respond to each negotiating maneuver and we person to support our oculus connected the prize."  

"We are going to person to unrecorded with immoderate woody is struck," Nott added.

Meanwhile, the ever-changing tariff authorities betwixt Canada and the U.S. is creating less-than-ideal conditions for the automotive business, Kingston said.

"All American manufacturers person a North American footprint, and that's due to the fact that we've had intentional argumentation done commercialized agreements," helium said.

The clip it is taking to unafraid a commercialized statement is creating uncertainty for the sector, helium added.

Nott said Canadians request to stay hopeful during existent negotiations with the U.S. government.

"I deliberation what we tin anticipation for is that connected some sides of the array determination is simply a designation of the agreements that Canada has had successful spot with the United States since 1965," Nott said.

"It makes much consciousness for the countries to physique cars unneurotic than individually — there's a batch of communal consciousness that falls into that."