Canadians Brace for Economic Fallout from Trump’s Tariffs

Mon Aug 18 2025 03:39:30 GMT+0300 (Eastern European Summer Time)
Canadians Brace for Economic Fallout from Trump’s Tariffs

The escalating trade war with the U.S. threatens to devastate Ontario's auto-parts industry


In Windsor, Ontario, local officials warn that ongoing tariff disputes could turn the area into a "ghost town" as job losses mount in the auto-parts sector.



As President Trump's tariffs on auto parts from Canada intensify, the small city of Windsor, known as the heart of Canada's auto industry, is grappling with a wave of anxiety. Union representatives Pauline Ridley and Colleen Barrette have voiced concerns that the departure of auto parts manufacturers could lead to a stark transformation of the city, leaving it desolate.

Windsor is home to around 100 small auto-parts manufacturers which employ approximately 9,000 people, surpassing the 5,400 jobs supported by the city's three primary auto assembly plants. Faced with a staggering 25 percent tariff on auto imports, these smaller companies, often lacking the financial resilience of their larger counterparts, are feeling the immediate pinch.

At KB Components, where Ridley serves as the union chair, around 100 employees are laid off amidst dwindling orders. The company's three Windsor facilities, which produce components for major brands like Toyota, Ford, and up-and-coming electric vehicle manufacturers Rivian and Lucid, are starting to suffer the impacts of the tariffs.

With uncertainty looming, the future of Windsor’s manufacturing landscape hangs in the balance, as fears of job losses ripple through the local community.

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