Ontario Premier Doug Ford’s government is convinced a Wednesday night phone call between the premier and US Commerce Secretary Howard Lutnick will cool tariffs on automobiles.
President Donald Trump on Wednesday afternoon announced a 25% tariff on all imported vehicles, as part of a greater cohort of global tariffs to go into effect April 2.
Lutnick reportedly called Ford after Trump’s announcement and acknowledged the integrated cross-border auto manufacturing supply chains, especially in Ontario, according to the Globe & Mail.
An anonymous provincial government source told the outlet Ontario believes Trump will ease up on, or at least refine, the impact of the auto tariffs.
The executive order issued by Trump on Wednesday says vehicles imported under the United States-Mexico-Canada free-trade agreement will be taxed 25% based on their non-US content and auto parts under the trade agreement will face tariffs at a later date based on their non-US content.
The source said Trump likely won’t cancel the tariffs, but would give Ontario automakers an advantage compared to other auto manufacturers across the world. The hoped-for tariff relief could surround the ratio of Canadian vs. US auto parts.
Ontario doesn’t expect clarification on the above until on or possibly after the April 2 launch date.
Ford on Wednesday said he had no idea the US was going to make such an announcement.
“We thought we’d be informed, the word ‘no surprises’ came up in [an earlier meeting with US officials]. And sure enough, well, here’s a surprise,” Ford told reporters after the auto tariff announcement.
“I can’t predict – I honestly believe the American administration some days can’t predict — what President Trump’s going to say.”
