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Windsor Grapples with Impact of US Auto Tariffs on Canadian Auto Industry
Windsor, Ontario, a city deeply rooted in the Canadian auto industry, finds itself at the forefront of economic uncertainty as US auto tariffs take effect. For generations, families in this region, the heart of Canada’s automotive sector, have relied on manufacturing jobs. Now, these livelihoods face potential disruption due to trade tensions and protectionist measures. Workers and local businesses alike are expressing concerns about the future of auto manufacturing in Windsor and the broader North American auto sector.
A Family Legacy in the Auto Sector
Kathryn Lawton, a Ford worker in Windsor, represents a multi-generational connection to the automotive industry. “My children are fifth generation Ford workers,” she states, highlighting the deep family ties to car manufacturing in the region. Both Kathryn and her husband Chad are employed by Ford, underscoring the significance of the auto sector to Windsor’s economy.
“Canadian Jobs”: Union Voices Discontent Over Tariff Claims
Chad Lawton dismisses assertions by former US President Donald Trump suggesting Canada appropriated American auto industry jobs as “ludicrous.” Speaking on the day the auto tariffs were implemented, he emphasized to the BBC, “These were never American jobs. These were Canadian jobs.” He further asserted, “They’ve always been Canadian jobs, and they’re going to stay Canadian jobs because we didn’t take them from them. We created them, we sustained them.” Kathryn Lawton echoed this sentiment, declaring Windsor as “Ford City.”
Windsor: Ground Zero in US-Canada Trade Friction
Nestled in southwestern Ontario, Windsor is directly impacted by the trade war initiated by the US. The city faces a 25% tariff on vehicles produced abroad – reduced to 12.5% for cars with at least 50% US-made components – alongside existing 25% tariffs on steel and aluminum imports. Tariffs on auto parts from the US are anticipated to be implemented imminently.
Historical Roots of Windsor’s Auto Industry
Windsor’s growth is intrinsically linked to Detroit, often called “Motor City,” establishing the region as a pivotal hub for North American automobile production. Ford’s initial establishment in Windsor dates back to 1896, followed by the arrival of the first Stellantis (formerly Chrysler) factory in 1928. Subsequently, numerous factories and suppliers proliferated in and around Windsor over the ensuing decades.
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Evolving Manufacturing Landscape
While manufacturing activity has shifted from the city center, Windsor still hosts two Ford engine plants and a Stellantis assembly facility, collectively providing employment for thousands. Workers in Windsor and Detroit have contributed to the production of iconic vehicles, including recent models like the Dodge Charger and Ford F-150. Approximately 24,000 individuals are directly employed in the automotive sector in Windsor-Essex, with an estimated 120,000 additional jobs indirectly dependent on the industry.
“Ford City” Neighborhood Reflects Automotive Heritage
A drive through the neighborhood surrounding the Ford plant offers a glimpse into the past, characterized by classic early 20th-century bungalows. While some show signs of age, many retain original features like verandas and small front yards. Murals depicting the city’s rich automotive history add to the local character.
Echoes of Past Economic Turmoil
Windsor’s resilience has been tested alongside Michigan’s, as both regions are interconnected through a highly integrated automotive supply chain. Chad Lawton draws parallels to the 2008 financial crisis, during which major American automakers – Ford, General Motors, and Chrysler – experienced significant losses. GM and Chrysler required substantial US government bailouts to avert collapse.
Current Crisis Evokes 2008 Downturn Fears
Lawton recalls the 2008 period as “bad, not just for next door, but also we went through a very, very rough time.” He observes similarities to the present situation, stating, “This feels the same. The level of anxiety with the workers, the level of fear, the idea and the belief that this is just something that is so completely out of your control that you can’t wrap your head around what to do.”
John D’Agnolo, president of Unifor Local 200, representing Ford workers in Windsor, describes the current situation’s impact as “havoc.” He predicts, “I think we’re going to see a recession,” and advises his members to prioritize essential spending due to economic uncertainty.
Concerns of Betrayal from Key Ally
Auto workers interviewed express particular dismay that the tariffs originate from the US, Canada’s closest economic and security partner. Austin Welzel, a Stellantis assembly line worker, characterized the situation as “a stab in the back,” adding, “It’s almost like our neighbors, our friends – they don’t want to work with us.”
Christina Grossi, a 25-year Ford employee, conveyed her “terrifying” apprehension about potential job loss and its repercussions for her family. Beyond financial concerns, Ms. Grossi also articulated fears of losing professional fulfillment, stating, “You’ve been doing this job for so long and you really take pride in it… And now someone’s taking away the opportunity to do that.”
Potential for Widespread Sector Disruption
Laura Dawson, executive director of Future Borders Coalition, warns of potential large-scale disruptions across the deeply integrated automotive sector. She anticipates continental ripple effects if Canadian exports are halted for more than a week. Dawson highlights the intricate nature of the US tariff structure, explaining that every automotive component will require meticulous assessment to determine its “qualifying content,” encompassing origin, labor costs, and, for steel or aluminum components, the metal’s source. She concludes, “Every part of an automobile is literally under a microscope for where it was produced and how.”
Canadian Political Response and Election Implications
The US tariffs have become a prominent issue in Canada’s general election. Canadian political parties are proposing various measures to support the auto sector. Prime Minister Mark Carney’s Liberal party has pledged a C$2 billion fund to enhance competitiveness and safeguard manufacturing jobs, coupled with plans to develop a comprehensive “all-in-Canada” auto component supply chain. He implemented approximately C$35 billion in retaliatory auto tariffs, supplementing previously announced reciprocal measures against the US. Conservative leader Pierre Poilievre has proposed eliminating sales tax on Canadian-made vehicles and establishing a fund to assist tariff-affected companies in retaining employees. Jagmeet Singh, leader of the New Democratic Party, advocating for a competitive stance in Windsor, has committed to allocating all revenue from counter-tariffs to worker support and preventing manufacturers from relocating equipment to the US.
Local Businesses Anticipate Economic Fallout
Windsor’s economy is heavily reliant on automakers and trade with the United States. Economic instability in the auto sector is expected to impact various businesses, from restaurants to charitable organizations. Van Niforos, owner of The Penalty Box, a popular restaurant among Stellantis workers, expresses concern about potential consequences. “We employ 60 people and we’re open six days a week. [If something happens to the Stellantis plant], will we be able to keep 60 people working? Absolutely no,” he stated.
Union Leader Stresses Need for Negotiation Amidst Uncertainty
Chad Lawton, from the local union, acknowledges the precariousness of the situation. He believes that Prime Minister Carney’s counter-tariffs exacerbate the problem. While advocating for trade negotiations, Lawton asserts Canada’s need to stand firm, stating, “cannot just concede and roll over.” Reflecting on his extensive 31-year tenure at Ford, Lawton concludes, “I have never seen anything close to this,” emphasizing the unprecedented uncertainty compared even to the COVID-19 pandemic, stating, “This is all over the map.”