Feds open to ‘every conceivable option’ if auto tariffs levied

OTTAWA With threats of devastating U.S. tariffs hanging over the auto sector, Canada’s economic development minister says the federal government is considering every possible way it could respond if the Trump administration follows through on its warning.

Navdeep Bains said Plan A is to continue encouraging the U.S. to back away from the tariff threat, which industry has warned would inflict serious damage on both countries’ economies. But just in case they are applied, Bains said the government is considering “every conceivable option.”

“We’re taking nothing off the table at this stage,” Bains said in an interview. “We’re looking at every tool in our toolbox.”

Bains declined to share specifics when asked about potential industry support in Canada or retaliatory actions against the U.S., however, he noted how the federal government took several steps to respond to American steel and aluminum duties.

Earlier this summer, the federal government applied retaliatory tariffs on $16.6-billion worth of U.S. imports of steel, aluminum and other products. It also announced financial aid for industries caught in the crossfire, including up to $2 billion in new funding and support for workers in steel, aluminum and manufacturing sectors.

Levies, however, on the critical auto industry would have far bigger impacts on Canada’s economy — and would likely call for a far greater response.

“I don’t want to get into the speculation game, all I can assure you is that we will continue to support the workers and ... the industry as we’ve done so in the past,” said Bains, who added that the government first needs to genuinely understand what the tariffs would look like and how they’re applied. “We take nothing for granted, we’re doing our due diligence, we’re doing our homework.”

U.S. President Donald Trump has made repeated threats that he would slap Canada with auto tariffs. In a tweet that appeared to reference NAFTA’s ongoing renegotiation, Trump wrote that the “deal with Mexico is coming along nicely” and that “Canada must wait.”

Trump then sent a warning to Canada: “Their Tariffs and Trade Barriers are far too high. Will tax cars if we can’t make a deal!”