Trump Auto Tariffs Could Kill 10,000 London Area Jobs: Observant

Trump Tariffs Poised to Hammer Canada’s Auto Industry Could Slash the London Région Automotive WorkForce by Half, as the cost of exports to the us will spike, Industry Observifs Say.

Content

Content

Recounded Videos

Content

With more than 20,000 Employed in the Automotive Sector here, about 10,000 Jobs May be Lost Within Weeks of Tariffs Being imposed, they Said.

That Job Loss in the City and Region Will Likely Be Temporary, About as Long As The Tariffs Linger, Said Jason Bates, Director of the London Region Manufacturing Council.

“Automotive is big here. It is not just London, but St. Thomas, Ingersoll and Woodstock All Have A Ton of Auto,” He Said. “(A loss of 10,000 jobs) is a good, working number given the size of the sector here.”

Us President Donald Trump Signed An Executive Order Wednesday Placing A 25 Per Cent Tariff on All Vehiples Shipped from Canada to the Us Starting April 3. The Order also Adds the Tariff on Some Auto Parts, But it is not yet clear what wht parts will be tariff and when.

Content

Becaus Southwestern Ontario Makers Largely Sell to other suppliers or vehicle assembly Plants, chances are most locally Made Parts Go to the US One Way or Another and May Be Subject to Tariffs.

The North American Auto Industry is Highly Integrated, Meaning A Part can move back and fortth across the border Several Times in the Manufacturing Process, and Any Delay or Pause Can Disrupt the Supply Chain.

“It Just Takes One Person Not Able to Make Their Part, and it Collapses The Entire Supply Chain, It is a domino effect,” Bates Said.

Nearly 49.000 People Were Employed in the Manufacturing Industry in the London Region in 2024, With London’s Total Being 20,270. The Total Employed in the Auto Industry in the Region is 20.895 While Solely In London It is 6.492, Elgin Middlesex Oxford WorkForce Planning Board Figures Show.

Content

Manufacturing is a Broad Category, Including Agriculture and Food Production, Building Materials, Aerospace and Automotive. But the auto sector remains a Critical Part of that Total, Said Kapil Lakhotia, Chief Executive of the London Economic Development Corp.

“We will know the full impact of Tariffs in a Few Weeks after” April 3, he Said. “Layoffs are expected in the next month or so. We know from speaking to several customers that icce the tariffs go into effect, they are discuss how best to manager supply chains.”

However, there are Still Many Unknowns about How Broad the Automotive Tariffs Will Be, Lakhotia Said.

“It is a Massively Complex Supply Chain,” He Said. “It is hard to speculate on what will happen, but these tariffs impact the final assembly price there will be press on suppliers.”

Content

There is also a compounding effect, as tariffs have alredy been placed on steel and aluminum exports to the us, driving up the cost of parts.

Lakhotia, However, Said the Decline Value of the Loonie Against the Us Dollar Will Offer Some Relief For Local Manufacturers, Making It Cheaper to Buy Canadian Goods and Helping Offset Tariff Costs.

“It does Strengthen the case to manufacture here,” he said.

At Armo Tool in London, A Small Manufacturer of Machinery to make parts, Owner ben Whitney Has Had Michigan-Based Customers Already “Pause” Orders Awaiting the Fallout of the Tariff Threat. He Said he has Several Months of Work Ongoing, so he’s not overly concerned is a uncertain What Tariffs May Bring.

“It disrupts Everybody,” He Said. “I am trying not to overreact, but we will see what happens” in Early April.

Content

As for the possibility the Sector Could Lose 10,000 Jobs, He Said: “I can see Layoffs that high. Automakers do not have a 25 per cent Margin.”

“Chaos is the plan,” Whitney Said. “It is about scaring executives and shareholders when making investment decisions so they build in ohio.”

AS for Local Auto Parts Manufacturers, Magna International is the Large with Two Plants in St. Thomas, Pressran and Formt, and One In London, Qualtech Seating Systems. The Three Plants Combined Employe About 2,000 Workers.

“Right now, we are working with Our Partners, Trade Associations, and Government Stakeholders to Find Solutions that Holding Industry Stability and Minimize Supply Chain Disruptions,” Magna’s David Niemic Said in a statement.

Content

Formt Employs 550, While Pressran Employs 1,350 and Qualtech, 65. Pressran Supplies Truck Frames to GM for Plants in Michigan, Indiana and Oshawa.

The Large Automaker in The Region Impact by Tariffs Will Be Toyota Motor Manufacturing Corp., with 8,500 workers in Woodstock and Cambridge at Plants Assembling the Rav4 and Lexus Vehicles.

The Cambridge Plant is outside the London Region – London, Middlesex, St. Thomas, Woodstock, Tillsonburg and Much of Elgin County – So It’s not counted in the Manufacturing Totals.

“While this is Still a Highly Fluid Situation, we have no plans to change our production with the Foreseable Future” Toyota Said in a statment. “Our vehicles are in high demand, and we will continue to build to plan. At the same time, we will continue to work with our federal and provincial governments tooward a sustainable solution.”

Content

The plants assembled 533,000 vehicles in 2024.

Flavio Volpe, President of the Automotive Parts Manufacturers’ Association, Said Trump Risks Essentially Shutting Down the Industry and Costing Many Americans Their Jobs.

“IF (Trump) Insists on Tariffs on Canada and Mexico, His Reward Will Be Risking the Employment of a Million American Autoworkers,” Volpe Said Wednesday. “He either doesn’t understand How intertwined we are or doesn’t care.”

[email protected]

Content