Quebec business concerned about U.S. tariffs on imported vehicles

U.S. President Donald Trump is set to impose a 25 percent tariff on vehicles imported into the United States on April 3, and those involved in car manufacturing in Canada are bracing for uncertain times.

In Quebec, businesses such as Tube Caron, which produces stainless steel and aluminum tubes for exhaust, cooling, and air intake systems in vehicles, could be impacted, as these auto parts are installed in vehicles shipped south of the border.

“We have some that go to Ontario and some that are located in Quebec,” said Michèle Caron, general manager at Tube Caron. “Our clients are high-end clients. They have beautiful products that are mostly produced in Canada.”

Caron is concerned about the looming tariff because of the effect it could have on her operation and its employees, should fewer vehicles produced in Canada be purchased in the United States.

“We don’t know exactly how our clients’ clients will react. Will they put the orders on hold? Will they cancel the orders? Or will they buy anyway with the tariffs in place?” said Caron.

CityNews spoke with locals in downtown Montreal, who also expressed concern about the potential tariffs on vehicles due to fears that they could raise car prices in Canada.

“It doesn’t help anyone,” said Matthew Akalestos, a Montrealer. “The cars are going to get more expensive. I personally have a used car, so I don’t have to buy another one, but for families, especially those looking to buy new cars.”

“When I can afford a car,” said Grace Dely, a Montrealer, “I think it’s going to be even harder for me.”

“The price of cars will go up, and again, there will be job losses,” said Nadia Furer, a Montrealer. “And the thing is, it took years to build such a market, and now all the efforts will be gone within weeks or months.”

“The U.S. industries and the people in the U.S. will suffer from this,” said Majid Babaei, a Montrealer.

The Tube Caron manufacturing facility, located in Lanoraie, about 60 kilometers northeast of Montreal, is already dealing with a 25 percent counter-tariff from Canada on the aluminum and steel tubes they import from the United States to produce their car parts.

“We’ve seen our costs increase, and we have to manage that and see how we can work with this increase,” said Caron.

Tube Caron is currently looking to source its raw production materials from suppliers within Canada and to diversify its business outside of the automotive industry in anticipation of tariffs that have no end in sight.

“For sure, the anxiety is there, but as of now, we’re keeping all of our employees in place and continuing to produce according to the orders we receive,” said Caron.