The latest volley in U.S. President Donald Trump’s trade war with Canada hit the struggling dollar Thursday, and also hammered share prices of auto manufacturers and parts companies.
And auto industry executives, union leaders, economists and politicians are warning tens of thousands of jobs are on the line across the continent after Trump announced a 25 per cent tariff on cars imported to the U.S., beginning April 3.
By the end of the trading day, shares of Ford had dropped 3.9 per cent, GM was down by 7.3 per cent and shares of Stellantis were off by 4.2 per cent.
Aurora-based parts maker Magna International was down 6.9 per cent, while Guelph-based Linamar saw its shares fall by 2.7 per cent.
The dollar, meanwhile, fell to as low as 69.80 cents (U.S.) in early trading, before recovering to 69.90 cents by 4 p.m. — down from Wednesday’s close of 70.09 cents. The loonie has been on a wild ride in 2025 falling to a year-to-date low of 67.61 cents Feb. 3, then rising to 70.54 cents Feb. 21.
While there’s an exemption for parts made in the U.S., auto industry analysts and economists have said that determining exactly what comes from where will be complex, given the thousands of components which go into a finished vehicle, and the highly integrated cross border supply chain.
Unifor president blasts Trump: ‘These are not his jobs to take’
It will disrupt the automotive industry across the content, putting workers in Canada, the U.S. and Mexico onto the unemployment line, economists, politicians and labour leaders say.
The head of Unifor, Canada’s largest private sector union, blasted the new tariffs.
“President Trump fails to understand the chaos and damage this tariff will inflict on workers and consumers in both Canada and the United States,” said Unifor national president Lana Payne in a written statement.
Trump’s premise that American workers are more deserving than Canadian ones is false, she added.
“Donald Trump has convinced himself that, somehow, the jobs of Canadian autoworkers are his to claim,” said Payne. “We have built cars here for over a century, long before the U.S. was our primary trade partner. I will state this as clearly and unequivocally as I can. These are not his jobs to take.”
But the head of the union representing American auto workers praised the tariffs, calling them “long overdue.”
‘A hammer blow’ for the automotive industry
“We applaud the Trump administration for stepping up to end the free trade disaster that has devastated working-class communities for decades,” said United Auto Workers President Shawn Fain. “The Trump administration has made history with today’s actions.”
Calling the tariffs “a hammer blow” for the automotive industry, BMO senior economist Erik Johnson said there’s not much doubt layoffs are coming.
“The North American auto sector is likely to face severe disruption if these tariffs remain in place for the foreseeable future,” said Johnson in a research note. “Production curtailments could begin soon after April 2 and furloughs and layoffs are likely to follow.”
And, Johnson said, Canada’s economy will take a bigger hit than the U.S.
“The implications for Canada of these tariffs are more stark,” Johnson said. “Automotive trade represents a much larger share of Canadian GDP and the majority of Canadian production is sent to the United States.”
Windsor mayor Drew Dilkens, whose city is home to 1,000 manufacturing firms — most of them linked to the auto industry — says layoffs will come quickly once tariffs are in effect. And the layoffs won’t just be limited to big assembly plants or the auto industry, either.
‘We haven’t stolen the auto industry from the U.S.’
“The plants will close very quickly. That will affect the parts sector, because we don’t need people making parts for vehicles that aren’t being made,” said Dilkens. “Ultimately it’s the person pouring coffee at Tim Hortons who doesn’t need to be there because most folks are just going to start hoarding all of their cash and saving for the rainy day.”
The shifting size, timing and nature of Trump’s tariff threats make it even harder for businesses and workers to plan with any kind of confidence, said Dilkens.
“I often say we’re not even quite sure where the goalposts are. Sometimes we don’t even know where the arena is.”
And Dilkens blasted the idea that Canadians are somehow stealing American jobs.
“We haven’t stolen the auto industry from the U.S.,” said Dilkens. “We’ve built it together.”
The head of the U.S.-based International Association of Machinists and Aerospace Workers blasted the tariffs.
“These tariffs disrupt vital supply chains, destabilize economies, and threaten the livelihoods of tens of thousands of workers, including over 100,000 aerospace workers across both nations,” said IAM president Brian Bryant in an open letter to U.S. senators. “Based on a flawed premise, these tariffs inflict unnecessary harm on working families in both the United States and Canada.”
