Toronto

'We will not budge': Ford says 1-month delay on auto tariffs not good enough

The tariffs are expected to have a devastating impact on Ontario's auto manufacturing industry, which employs well over 100,000 people.

Auto giants previously said work at Ontario plants could grind to a halt within days of tariff launch

Doug Ford surrounded by reporters and speaking to a microphone in a dark-lit room
Ontario Premier Doug Ford spoke with reporters at Queens Park, saying he's still concerned by looming tariffs. (CBC News )

Ontario Premier Doug Ford says the U.S. announcing a one-month pause on tariffs for the auto industry is no breath of fresh air here at home. 

White House press secretary Karoline Leavitt announced the month-long exemption Wednesday, saying the change came after the leaders of America's "Big 3" carmakers, Ford, General Motors and Stellantis, called Trump and asked for tariff relief. 

She said reciprocal tariffs from the U.S. are still planned to go into effect on April 2, with Ford voicing worries the pause will give Americans more time to gain an advantage in the trade war.

"That always concerns me when someone says, yeah, give us 30 days as we ramp up to start moving south of the border," Ford told reporters at Queens Park Wednesday.

"That's unacceptable. We need certainty." 

The tariffs are expected to have a devastating impact on Ontario's auto manufacturing industry, which employs well over 100,000 people.

Those in the sector said jobs could be at risk because of how interconnected they are with the U.S., with auto giants previously saying work at Ontario plants could grind to a halt within five to eight days. 

"If [auto tariffs proceed] on April 2, I guarantee you assembly lines will shut down on both sides of the border," Ford said on CNN Wednesday afternoon. 

In the interview, the premier also flagged that auto parts can go back and fourth across the border up to eight times during production and car prices will go up if they're subject to tariffs at every crossing. 

The tariffs are also expected to have a major impact on the province's steel industry, with Ontarians expected feel the pinch at the checkout counter as they're poised to drive up inflation.

You can read more about tariffs, how they work and what they could mean for Canada here

'Zero tariffs and that's it'

Ford also told reporters he's been in talks with American politicians and Justin Trudeau as he insists Canada won't compromise on its response to the trade war. 

"We will not budge. Zero tariffs and that's it," Ford said. 

Reporters asked him about his call with U.S. Commerce Secretary Howard Lutnick Tuesday and whether the conversation was "tense," with Ford refusing to "tone it down" when Lutnick asked him to. 

"Well, that's pretty accurate," Ford said – a different sentiment than how he described the call on ABC news earlier Wednesday. 

"We wanna have a fair trade agreement and that's what my message to him was. And he understands. He's actually, he's a good man." he told the American network. 

WATCH | Ontario's response to the U.S. tariffs: 

Here's how Ford is responding to U.S. tariffs

2 days ago
Duration 3:11
Doug Ford says he’ll ‘spare no expense to protect Ontario workers,’ while highlighting a slew of retaliatory measures in response to sweeping tariffs imposed by Donald Trump.

Lutnick previously hinted at being willing to negotiate with Canada and "meet in the middle."

Since Trump's 25 per cent tariffs on most Canadian goods and 10 per cent on energy kicked in, Canada responded by slapping tariffs on $30 billion worth of American goods, with tariffs on an additional $125 billion worth of goods poised to come in three weeks.

Province already struck back on alcohol, procurement 

The province has taken a slew of measures to combat the tariffs since they kicked in Tuesday, including taking American liquor off LCBO shelves, tearing up a $100-million deal with Elon Musk's Starlink internet provider, and banning U.S. companies from procurement contracts.

So far, it appears at least one of those measures has resonated in American media: Ford's threat to cut or put a 25 per cent surcharge on electricity, which Ontario supplies to about 1.5 million customers in New York, Michigan and Minnesota. 

Asked on CNN whether cutting the electricity is still on the table, the premier said "as long as these tariffs happen, I have no choice. I have absolutely no choice."

Ford also previously threatened to add a surcharge or cut off critical mineral exports to the U.S.

Real estate market also reacting 

With the province already behind on its goal to build 1.5 million homes by 2031, the trade war is also expected to hit Ontario's housing sector. 

The GTA's Building Industry and Land Development association anticipates the economic uncertainty will lead to fewer homes being built and prices going up.

"We have an industry that really is facing a lot of challenges right now. You add in further economic uncertainty and it will potentially discourage people from making that purchase," said David Wilkes, the association's president.

The number of GTA homes on the market increased by more than five per cent last month while home sales fell by more than 27 per cent compared to a year ago. Those in the industry say buyers who were hopeful about declining interest rates are now weary of the financial impacts of a trade war. 

WATCH | How the U.S.-Canada trade war could impact GTA housing: 

How the U.S.-Canada trade war could impact GTA housing

11 hours ago
Duration 3:33
Amid the U.S.-Canada trade war, CBC’s Chris Glover looks into what impact the tariffs could have on the GTA’s housing market. One local building association says the economic uncertainty could lead to fewer homes being built.

"It's pulling buyers to the sidelines," said Realosophy Realty president John Pasalis. 

"All of this economic uncertainty is not good for housing markets. In most markets, we like predictable markets."

In a statement, Ontario's housing minister said he is monitoring the tariffs' impact on home building. 

ABOUT THE AUTHOR

Naama Weingarten is a reporter with CBC News based in Toronto. You can reach her at [email protected] or follow her on X @NaamaWeingarten.

With files from Chris Glover