How Trump's Policies Are Impacting Canadian Auto Jobs and EV Investments

Honda’s decision to delay a $15 billion electric vehicle (EV) supply chain in Ontario marks a significant setback for Canadian autoworkers. This move is largely attributed to U.S. President Donald Trump’s escalating attacks on the EV sector and cross-border auto trade, which are increasingly putting Canadian jobs at risk.

The Impact of U.S. Policies on Canadian Auto Jobs

• Unifor National President Lana Payne has voiced concerns, stating, "Trump’s rollback of EV policies and his punishing tariffs on Canadian-made vehicles are killing jobs week after week and threatening the future of our industry."
• Honda has postponed plans to establish an EV supply chain in Ontario by approximately two years. The original plan, announced in April 2024, included four new manufacturing facilities capable of producing up to 240,000 EVs annually, with a new EV assembly plant and battery production facilities in Alliston.

Recent Job Losses in Canada’s Auto Sector

• General Motors recently paused production of its BrightDrop electric van at the CAMI Assembly Plant in Ingersoll and announced plans to reduce a shift at the Oshawa Assembly Plant this fall. These decisions are directly linked to Trump’s tariffs on Canadian-assembled vehicles.
• On April 3, the Trump Administration imposed a 25% tariff on Canadian-made vehicles, while strategically sparing Canadian-made auto parts to pressure automakers into moving assembly operations to the U.S.

Calls for Government Action

Unifor is urging the federal government to take bold action to defend Canadian auto manufacturing, including:

• Strong investment and job protections
• A clear strategy to support the EV transition amidst growing U.S. protectionism and global competition, particularly from China.
• Revoking tariff-free privileges for automakers in Canada if promised investments are cancelled or shifted to the U.S.