The worst-case scenario painted by CIBC economist Royce Mendes about a US tariff on Canadian-built cars is terrifying but entirely unsurprising. Any Canadian who can count — let’s see, 350 million of them, 35 million of us — will know that US automakers are here to build cars cheaply and ship them 100 miles to Americans. Mendes guesses Wednesday that rigorous tariffs might reduce the present annual production of cars at places like Oakville and Windsor from two million to possibly half that. It would be a crushing blow to the national economy and the lives of millions of Canadians. For all Mendes knows, Donald Trump may be inclined, if he can get away with it, to be even more vicious than that. He may not do it but no one should harbour any doubt that it is all possible. Mendes is quoted as saying: “It wasn’t that long ago when it was commonplace to question whether President Trump could make good on his promises. But, so far, he’s generally found ways to stay true to his word, and that’s exactly what’s so concerning about auto tariffs.”
