The GM auto assembly plant in Oshawa, Ont., on March 4. With a large auto industry supporting thousands of jobs, the city is bracing for the impacts of U.S. tariffs.Sammy Kogan/The Globe and Mail
Union leaders at General Motors’ Oshawa assembly plant are braced for a halt in production as U.S. tariffs choke off the supply chain. But the Unifor executives, who have seen the plant east of Toronto weather the 2008 financial crisis, the pandemic and global cost-cutting, say they believe GM has a future in Oshawa.
“We’ve lived through everything in the last 20 years and somehow we’ll live through this,” said Jeff Gray, who represents 5,000 members at the Oshawa plant, including 3,000 GM employees.
U.S. President Donald Trump on Tuesday imposed 25-per-cent tariffs on goods imported from Canada and Mexico, fulfilling a months-long threat in what he says is a move intended to create U.S. jobs and balance trade.
“They’ll have to build their car plants and other things in the United States, in which case they’ll have no tariffs,” Mr. Trump said on Monday.
Prime Minister Justin Trudeau responded with retaliatory tariffs and said Mr. Trump is trying to devastate the Canadian economy to make it easier to annex the country.
In Oshawa, the GM workers who make Silverado pickup trucks for export to the U.S. from parts that come from Mexico, the U.S., Canada, China and elsewhere, are uneasy, said Jason Gale, a Unifor chairperson at the plant. “They just want to know they’ll continue to collect a paycheque,” Mr. Gale said.
He urged governments to find a way to end the trade war.
“We want to keep building vehicles here. We don’t want other jobs; we want these jobs,” he said.
Unifor GM Plant Chairperson Jason Gale says the GM workers who make Silverado pickup trucks for export to the U.S. are uneasy.Sammy Kogan/The Globe and Mail
GM did not respond to e-mails on Tuesday.
Experts say the U.S. tariffs will drive up the price U.S. consumers pay for goods, and cause job losses and economic harm. The integrated North American auto industry has been built on free trade among the three countries, they say, and will be unable to withstand such massive tariffs.
Mary Barra, GM’s chief executive officer, said the automaker has plans to deal with the levies, including moving some production, but did not provide details.
The integrated North American auto industry has been built on free trade among the three countries, experts say, and will be unable to withstand massive tariffs.Sammy Kogan/The Globe and Mail
In Oshawa on Tuesday, news of the tariffs was met with a mix of dread and determination to make it through yet another bout of tough times. Ron Fraser, a retiree and former Sudbury resident who worked for a mining company and saw firsthand the decline of an industry, expressed compassion for workers face uncertainty.
“I’m glad I’m not working at an auto plant,” he said.
Oshawa Mayor Dan Carter says he is disappointed the tariffs have been laid.Sammy Kogan/The Globe and Mail
Dan Carter, Mayor of Oshawa, said he is disappointed the tariffs have been laid. Although the city’s manufacturing base has been steadily eroded over the years, it is still an important part of the economy. GM’s roots in Oshawa date back more than 100 years, and the plant once employed 10 times as many as it does now.
“It still plays a vital role in our community,” he said of the factory.
Thomas Uhlig and Lorrie Byrne at a local restaurant close to the GM plant in Oshawa. Ms. Byrne's brother, cousins and uncles all made cars for a living, and Mr. Uhlig, Texas-born and a dual citizen, says the trade war has upended a relationship between the two countries that has been mutually beneficial.Sammy Kogan/The Globe and Mail
Lorrie Byrne, 71, is a retired teacher who lived all her life in Oshawa. Her brother, cousins and uncles all made cars for a living. It was a well-paying job that allowed them to buy homes and live comfortable lives. In nearby Ajax, Chrysler was a big employer. She has seen the decline of the industry, as Mexico ramped up production and Japanese car makers became popular. Ms. Byrne said she fears the Trump tariffs will devastate what is left of the auto industry in the region, wipe out jobs in all sectors and make it harder for her children to start their lives.
“It’s just so disheartening, the whole thing,” she said, seated in a restaurant. “I never thought I would see the day when the United States is seen as something to be feared rather than an ally,”
Her husband, Thomas Uhlig, is Texas-born and a dual citizen. The trade war has upended a relationship between the two countries that has been mutually beneficial, he said. “It feels like a betrayal.”
Jeff Grey, the president of Unifor Local 222 which represents workers at the General Motors plant in Oshawa, Ont., said his members are feeling uneasy as tariffs between the United States and Canada go into effect.
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