City of Oshawa Mayor, Dan Carter, yesterday said the auto industry in Oshawa – and wider Canada – has been exempted from U.S. tariffs on Canada for 30 days.
Oshawa is home to a General Motors (GM) factory, which is supplied by many Durham-based vendors.
Durham’s local leaders are continuing to address the recent 25 per cent tariff imposed by the United States on Canadian goods.
The Regional CEO John Henry, Oshawa Mayor Carter and Clarington Mayor Adrian Foster, yesterday released statements outlining the anticipated economic impact and their plans to support local businesses.
On March 4, Ajax Mayor Shaun Collier and Whitby Mayor Elizabeth Roy, had both issued statments (see below).
Significant Challenges: Mayor Carter
Mayor Carter, who had earlier said thousands of jobs in Oshawa are related to U.S. companies, emphasized the significant impact the tariffs will have on the city and discussed strategies to mitigate these challenges.
He stated, “Despite our unique strengths and accomplishments as both a community and nation, we will still face significant challenges related to the new tariffs. As your mayor, I am committed to addressing these issues and to sharing updates.”
Oshawa’s auto sector, home to the GM factory, is particularly vulnerable. Mayor Carter noted, “while the United States has announced a 30 day exemption on auto vehicle tariffs for vehicles that comply with the United States-Mexico-Canada Agreement’s rules of origin, the City of Oshawa stands as a proud member of the Ontario Auto Mayors’ Caucus, collaborating at provincial and federal levels to promote awareness, advocacy and strategic policy initiatives that strengthen the Canadian economy through automotive sector advancements and investments. The Ontario Auto Mayors advocate for government incentives to ensure Canada remains competitive with other auto jurisdictions.”
Mayor Carter said he is continuing to meet with affected businesses and encouraged them to request a site visit. He explained, “with support of the city’s Business and Economic Development Services team, I am continuing to meet with local businesses to understand their unique challenges and impacts on operations, suppliers and customers. Businesses are encouraged to request a site visit by completing our online form.”
Liberalize Interprovincial Trade Barriers
Furthermore, he is advocating for changes to interprovincial trade barriers to simplify the process of buying Canadian products and to advance the city’s interests in discussions with other Ontario mayors. He stated, “Policy makers have identified interprovincial trade barriers as an area for reform that could significantly boost the economy. We look forward to advocating for these changes and the opportunities they could bring for Oshawa companies to access new domestic markets. I continue to represent our city’s interests through the Ontario Big City Mayors (OBCM) tariff working group, influencing policy and program decisions. Through policy development, advocacy, discussions, and partnerships, we support a strong and resilient city.”
In light of the potential damage the tariffs pose to local businesses, Mayor Carter calls for the city to unite. “Throughout Oshawa’s history, our great city has always risen to the occasion, even in divisive times. Now, we must unite to face new challenges and seize opportunities to further diversify and strengthen our economy,” he concluded.
Regional leaders challenge U.S. tariffs
Durham Regional Chair and the mayors from all eight local area municipalities, said in a joint statement: “The introduction of 25 per cent tariffs on Canadian goods and 10 per cent levy on Canadian energy marks a regrettable turn in our economic relationship with the United States. These tariffs pose a serious threat to the strong bonds and mutual prosperity we have cultivated over the years.
“We fully support the federal and provincial government’s response—25 per cent immediate tariffs on $30 billion worth of American goods, and tariffs on a further $125 billion of American products 21 days later. We agree with the importance of responding with strength to U.S. tariffs, robust business supports, promotion and support of Durham as we help residents and businesses facing reduced affordability.
“We are committed to supporting our local businesses and residents by thoroughly assessing the impacts of these tariffs and advocating for their needs. Through the Durham Economic Task Force, the Region’s business support community is moving to strengthen our local economy.
Those initiatives include:
- A dedicated Tariff Response landing page with resources and information for Durham Region businesses.
- An information webinar on March 20 for exporters seeking to diversify to other markets, with experts on our international trade agreements, Export Development Canada, and Government Affairs Canada. Registration details will be shared on the Tariff Response page.
- Connecting with businesses to advise on how to mitigate impacts and to connect them to government services.
- Supporting a Team Canada response by identifying businesses that can advocate in the U.S. on behalf of Canada’s trade position.
- Developing a trade diversification initiative to help companies sell products in international markets beyond the U.S.
- Leveraging an investment mission to Hannover Messe in March to promote trade opportunities for local producers in the European market.
- A tourism marketing and promotional campaign showcasing Durham Region’s locally owned and operated producers and service providers, tourism operators, and food and beverage producers.
“We are changing municipal procurement practices to ensure resilience against trade risks, diversify supply chains, capitalize on interprovincial trade opportunities, and support local businesses in strengthening their competitive edge,” said the joint statement adding, “We recognize the coming months will be difficult, but we believe in Durham Region’s resilience and strength. Together we will overcome these obstacles and emerge stronger.”
Disappointing: Mayor Foster
Mayor Foster said, “This is a disappointing moment in history as President Trump’s trade tariffs take effect. The escalating trade war will hurt many people in both Canada and the United States, threatening our intertwined economies, placing considerable pressure on our agricultural and manufacturing sectors, and driving up the cost of goods.”
He urged the Province of Ontario and the Government of Canada to enact legislation that champions Canadian businesses by providing them with a competitive edge in procurement processes and dismantling interprovincial trade barriers. “By partnering with the Region of Durham and municipalities across the province, we are standing up for our communities,” the statement continued.
Emphasizing the importance of supporting local commerce, he added, “Now, more than ever, it’s important to shop locally and support Canadian-made products. We must not forget that we have significant buying power both collectively and as individuals. For those unsure where to begin, the Clarington Board of Trade and local business improvement areas are excellent resources for finding local goods and services.”
In response to the trade war, he stressed that the strength of both the community and the nation lies in unity. “Let’s support our workers and uphold our values. Shop local, support Canada,” he concluded.
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