Over 4,000 local auto jobs stand to be affected by U.S. trade tariffs if enacted on April 2

CONNOR LUCZKA, Local Journalism Initiative Reporter

Across about 18-20 companies in the region, there are about 4,000 direct employees in the local automotive sector, according to investStratford CEO Joani Gerber, that stand to be affected by the 25 per-cent U.S. trade tariff on all automotive parts manufactured in Canada, which are set to take effect on April 2.

But, as Gerber said, that doesn’t include the 100-300 transport trucks moving through the region or the other various industries that will be indirectly affected by these tariffs.

“The trickle-down effect of it will be significant, which is very hard to quantify,” Gerber said. “There's always the worst-case scenarios, which I don't think we're going to get to that. I really hope we don't.

“This community is exceptionally resilient, and as we saw through COVID, tourism picks up where manufacturing needs the help and vice versa. So, the diversification of the industries in Stratford, the sectors in Stratford and Perth County and St. Marys, will help us be resilient. It's not going to make us tariff proof, but it will certainly help.”

Gerber, who also announced a regional tariff taskforce on March 3 that includes representatives from the City of Stratford, the Town of St. Marys and Perth County, said the 25 per-cent tariffs on all Canadian goods, save automotive goods, and the 10 per-cent tariffs on Canadian energy enacted so far have already had an impact, not only on the day-to-day operations of many businesses, but on long-term capital projects as well. A number of projects have been put on hold until a more certain time presents itself.

Additionally, the uncertainty of the tariffs has had ripple effects. For instance, they have been made aware of customs firms that handle cross-border shipping for companies slapping a blanket surcharge on anything, unsure if the goods they are shipping will be affected by the tariffs or not.

In response to the tariffs announced by U.S. President Donald Trump, then Prime Minister Justin Trudeau announced retaliatory tariffs on $30 billion in American goods, with $125 billion more planned if the U.S. tariffs persist.

Gerber was largely supportive of the measure, but noted while hitting back may feel good, it is possible adding more uncertainty to the equation may be harmful for local organizations already struggling to make sense of how the original tariffs stand to affect their business.

“But I will say this; the first $30 billion of tariffs that the federal government put on was pretty well determined. The second round … the federal government requires a mandatory consultation period, which allows business owners to weigh in on what's being considered and the conversations that we're having at the federal level. They're very, very keen to hear from businesses on those things. … Reciprocal tariffs feel good because they hit me and I hit them back, but what that actually means is that it does get more expensive now for Canadian businesses to manufacture and operate, and I think the sentiment is that we'll tolerate that as long as we're hitting them back. But when that ball keeps moving and keeps changing, that also gets very complex.”

Gerber said that being mindful of supporting local, buying local and buying Canadian can help the community as it grapples with the tariffs, though acknowledged that for some that is easier said than done, especially if economic hardship is on the horizon.

Additionally, Gerber reminded the public of the resources collected by the tariff taskforce for affected employers and residents, which can be found at www.investstratford.com/taskforce.

Gerber also shared the taskforce is in the process of a mayoral letter-writing campaign for U.S. counterparts whose communities stand to be affected when the trickle-down effect reaches them. The campaign is an effort to make connections and influence U.S. policy from pressures on both sides of the border. Letters from Stratford Mayor Martin Ritsma could be going out as early as March 21.