US-Canada trade war tests deep manufacturing ties between Detroit and Windsor
In the first of two reports from the US state of Michigan and the Canadian province of Ontario, CNA looks at what is at stake for manufacturers as Canada's retaliatory tariffs on US goods take effect on Sep 8.
The US-Canada trade war is putting significant strain on the manufacturing ties between Detroit, Michigan and Windsor, Ontario. Every day, around $2 billion worth of goods cross between the two countries with the Detroit-Windsor corridor serving as a critical trade gateway. The US has imposed 50% tariffs on $27.6 billion worth of Canadian goods, while Canada will retaliate with 15%, 25 and 50% tariffs on $27.6 billion worth of US imports starting September 8th.
Canadian manufacturers such as Cavalier Tool & Manufacturing, which supplies parts to American companies, are struggling with the uncertainty of the new tariffs. The representative of the company noted that it is becoming more difficult to source materials needed for production at affordable prices. Industry leaders fear that the escalating trade war could weaken manufacturing on both sides of the border, as low-cost countries might benefit if business is lost on either side.
Written by urgent.news from Channel News Asia's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
