A few weeks ago, SWON published a blog on Trump's newly announced 50% tariff on copper imports and since then, more news has on this subject has come into light.
A recent study now draws attention to how these broader tariff policies are affecting another key sector, Ontario’s auto industry. Ontario's auto sector is deeply integrated with the U.S supply chains, especially vehicles and parts,, which often cross the border several times during production and making. Leaving the industry particularly vulnerable to tariffs on steel, aluminum, copper and finished vehicles. However, the USMCA agreement does offer protections, yet on going changes and trade policy changes have introduced uncertainty and additional costs.
Manufacturers are facing higher production costs, delayed delivery schedules, and increase administrative burdens related to customs answer certifications. Some of these companies have either reduced or paused investments within Ontario, fast citing the unpredictability of cross-border trade. The copper tariffs also tie into this broader issue as copper is a core input for electric vehicles and electronics in modern vehicles. Increased material costs will ultimately add pressure across the supply chain and compounding the challenges already faced by auto manufacturers.
Ontario communities such as Windsor, Oshawa and London, which are homes to major auto employers, and more specifically exposed to these changes. For policymakers and industry leaders, this highlights the need to strengthen supply chain resilience and advocate for streamlined USMCA processes. It's especially important that trade discussions reflect the significant economic role the auto industry plays in Southwestern Ontario. Continued collaboration between government, industry and policy experts could help navigate these challenges by supporting long-term economic stability within the region.
For municipalities and businesses across Southwestern Ontario, understanding the local impacts of global trade decisions is critical for planning, investment add workforce ability. Be sure to stay updated on how these trade barriers impact you!