Ontario’s order for new subway trains could be hit by Canadian counter-tariffs
The retaliatory tariffs could apply to self-driving, electric trains ordered by the Ford government for the Ontario Line that will be built south of the border.
Canada's retaliatory tariffs on U.S. products could significantly raise the cost of driverless trains ordered by Ontario for the Ontario Line in Toronto. Canada unveiled a list of 700 items subject to tariffs from the U.S., including electrical power rail locomotives. Infrastructure Ontario signed a $9 billion contract with Hitachi Rail in 2022 to provide trains, rolling stock, and maintenance for the new subway route.
Hitachi's trains are built in Maryland, U.S., then shipped to Toronto and across the border after the line's completion in the early 2030s. If current tariffs remain in place when the order is finalized, substantial tariffs could be imposed on the trains by the federal government. Metrolinx spokesperson stated their efforts to procure from Ontario and Canadian-based companies.
The federal Department of Finance explained the counter-levies as a "focused and strategic" move, with targeted exemptions for potential negative impacts on the Canadian economy. Ontario NDP leader criticized the situation and alleged that good jobs were lost due to government choices. Alstom had previously submitted a bid for the Ontario Line trains but lost the contract.
Work on the Ontario Line is ongoing in Toronto, but completion is expected in the early 2030s. The total value of the contract is $9 billion, with the completed line estimated at $34 billion. Ontario Premier Doug Ford acknowledged the potential for increased prices as a result of the trade war.
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