Canadian Prime Minister Mark Carney is promising a billion-dollar-plus fund to help the country's auto sector deal with the fallout from the Trump administration's trade policy.
President Trump is set to slap 25% tariffs on all Canadian nonenergy imports, and he has repeatedly said the U.S. does not need automobiles assembled in Canada.
The auto fund, valued at 2 billion Canadian dollars or the equivalent of $1.40 billion, is an indication of the type of fiscal support officials are ready to deploy to mitigate the damage from a protracted U.S.-Canada trade conflict. Prior to calling the election, the Carney-led Liberal government unveiled C$6.5 billion in financing to help sectors exposed by Trump's tariffs.
Further, Carney's proposal offers a hint of how lawmakers intend to rebuild an economy with a less-friendly trading partner in the U.S.
Carney, at an election-campaign stop in Windsor, Ontario - across the border from Detroit - said the fund would support workers at auto assembly and auto parts factories, as well as fortify the existing Canadian auto supply chain. He said Canada's auto industry, which employs about 125,000 people, is at risk because auto parts produced in Canada tend to cross the border several times before it is part of a finished product.
"What we need to do is build more of those autos, and more of each auto, right here in Canada. That will help insulate us from President Trump's trade threats," Carney said.
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