While the majority of products are exempt from US tariffs under the current free trade agreement between the US, Canada and Mexico – the USMCA – the White House has imposed tariffs on specific sectors, including 15% to 50% tariffs on steel, aluminum, and copper – the ones proving challenging to White – and 25% tariffs on vehicles.
“What’s key is just that there are these different parts of the economy or the country that are affected differently,” said Kronick.
“We’ve seen big changes in [auto hubs] Brampton and Windsor and changes where steel, aluminum, and autos are all impacted. I think they’re experiencing it far more acutely than, perhaps, people in downtown Toronto.”
Ottawa is negotiating with the US both to reduce these sectoral tariffs and on a review of the USMCA but have yet to reach a deal.
“I think at this point most people expect there to be some tariffs on whatever a deal…
