shock and disbelief over trump's 'act of economic aggression'
cavalier tool and manufacturing sales manager peter gos...
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peter gossman, sales manager at cavalier tool is shown at the windsor business on tuesday, march 4, 2025.
dan janisse
/
windsor star
cavalier tool and manufacturing sales manager peter gossmann equated u.s. president donald trump’s levying of a 25 per cent tariff on all canadian goods to an act of economic war that has left the industry in shock and disbelief.
“that’s what it’s called – a trade war,” gossman said. “it’s an act of aggression – economic aggression. trump is using economic force.”
gossman said 90 per cent of cavalier’s production is exported to the u.s. the local manufacturing sector, which exports the vast majority of its products stateside, accounts for about $3.8 billion of windsor/essex county’s annual gdp.
“it’s shock and disbelief,” said gossmann that trump implemented the tariffs that he said will quickly bring the auto industry to a grinding halt.
stellantis-canada’s head of communications lou ann gosselin deferred commenting on the tariffs to the canadian vehicle manufacturers’ association, which represents the interests of stellantis, ford and gm.
however, in an email to the star gosselin confirmed production was continuing as normal at its windsor assembly plant.
“the tariffs announced by the u.s. have immediate negative consequences for the highly integrated north american automotive supply chain,” canadian vehicle manufacturers’ association president/ceo brian kingston in a statement.
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“tariffs on vehicles and parts will reduce north american vehicle production, increase vehicle prices, and lead to job losses at manufacturing facilities across the continent. every effort should be made to remove the tariffs as soon as possible.”
gossmann added local tool and mould makers will quickly begin to feel the pain. he said smaller companies simply can’t absorb an increase of 25 per cent to their costs.
“a lot of windsor shops are mostly or strictly automotive,” gossman said. “i think we’ll see them close pretty soon.
“how can you manufacture a part for assembly and have to ship it to the u.s. for a loss. stop making the parts is the less expensive step.”
gossmann said cavalier has already lost some projects to the u.s. that were slated for its windsor plant.
however, most of their u.s. customers to date have been carrying as usual.
“i think we’ll see more of a significant reaction now,” said gossmann, who said the company plans to ride things out and has no layoff plans currently.
however, gossmann noted that u.s. manufacturers won’t be able to replace canadian production quickly. about 40 per cent of north america’s largest tool/mould makers are located in this country.
“it would take them years to try and replace canadian production and endure a lot of pain, so instead they’d have to turn to places like china,” gossmann said. “is that what the u.s. administration wants, to force canadian production to china?”
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unifor national president lana payne said american workers will not escape the pain of the impending shutdown of the north american auto industry. payne called the tariffs unjust and said this action will permanently change the dynamics of the canada-u.s. relationship
“trump has seriously misjudged the resolve and unity of canadians, and he has misjudged how damaging this trade war will be for american workers,” payne said.
“these tariffs will hurt working people with higher prices for everyday goods, destroy jobs on both sides of the border and have devastating consequences for highly integrated manufacturing sectors, including auto, across canada and the u.s.
“today our trade relationship forever changed with the u.s. and now we must invest in ourselves, redefine international trade relationships, and build a new, more resilient economy.”
there will be no escaping much higher prices for vehicles on either side of the border.
the u.s. industry relies on canadian production for about 20 per cent of its parts.
combined with the contributions of mexican suppliers, u.s. auto analysts are estimating the cost of a vehicle will increase between $4,000 and $12,000 depending on the model.
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trump’s tariff policy is also drawing fire from the u.s.’s border trade alliance.
“tariffs on our friends, neighbours, and trading partners is a significant step backwards,” wrote border trade alliance chairman pete sepulveda, jr. and president britton mullen in a joint statement tuesday.
“the cost of these new import taxes will cause lost jobs and higher prices, undermining the president’s goal of taming inflation.
“we should be striving to achieve the economic promise of usmca and trilateral co-operation and prosperity. we hope the administration will reconsider the effects of tariffs on consumers, job creators, and the country’s economic health.”
dwaddell@postmedia.com
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