Canada's auto industry braces for slump in US sales

Canada's auto industry is gearing up for a significant downturn in U.S. sales as the specter of U.S. tariffs on Canadian goods looms closer.

Economists are sounding the alarm, highlighting the potential devastating effects of the impending 25-percent tariffs on the Canadian economy, particularly hitting sectors like the auto industry hard.

Oshawa, a city adjacent to Toronto, boasts a rich automotive manufacturing heritage, showcased at the Canadian Automotive Museum. The legacy of the McLaughlin Motor Car Company, which commenced car production in 1907, laid the foundation for the region's early automotive success.

Today, the expansive General Motors plant in Oshawa churns out Silverado trucks, symbolizing a modern chapter in the city's automotive history. However, anxiety grips workers across Canada's auto sector as uncertainty looms.

U.S. President Donald Trump's tariff threats on all Canadian goods, including American brands manufactured in Canada, have cast a shadow of doubt over the industry's future.

"I'll say this past four years probably been the best four years we've had, I've had. Now we have discussions or talks of proposed tariffs. And it's a lot of 'what's going on,' 'what's going to happen to us' on the floor," said Jason Gale, chairperson of the Unifor Local 222.

The auto industry stands as a pivotal economic powerhouse for Canada, generating over 50 billion U.S. dollars in exports, with a staggering 93 percent directed towards the U.S. market.

David Soberman, a professor at the Rotman School of Management, University of Toronto, emphasized the dire predicament facing the Canadian economy and its workforce.

"Seventy percent of our trade goes to the U.S., probably between three and 400 billion dollars a year. And certain sectors especially are extremely integrated, and the automobile sector is one of them. It just doesn't make any economic sense, and it's going to be extremely difficult for the Canadian economy, but also for Canadian workers," said Soberman.

For workers at these plants, the threat of U.S. tariffs evokes profound concern. The looming tariffs could potentially disrupt the auto industry, leading to potential job losses and economic upheaval.

"The people that are building the vehicles, they're going to be out of work almost immediately, and then we're going to have to figure out how to get them back to work and how to keep the industry running. We all have mortgages or rent, we have food, we need to buy utilities. None of that's stuff that doesn't stop because you lost your job," said Gale.

Canada's auto industry braces for slump in US sales

Canada's auto industry braces for slump in US sales

Canada's auto industry braces for slump in US sales

Canada's auto industry braces for slump in US sales

Canada's auto industry braces for slump in US sales

The Iranian government is focusing on public concerns and maintaining stable supplies of essential goods amid recent protests, Iranian President Masoud Pezeshkian said in a televised interview on Sunday.

In the city of Karaj, northwest of the capital Tehran, daily life has largely continued as normal. A video filmed by a local resident on Sunday shows food stores open and grocery shelves fully stocked.

"This is the block near my home, and there are some food stores here. Daily life continues here. Last night we did not see many protests in Karaj. Right now the city is very safe. This is a grocery store close to my home. All the food is available; nothing is in shortage. Here are noodles and different types of beans. Here are dairy products, cheese, and yogurt. I also checked other grocery stores and didn't see any shortages. Everything is available," said local resident Ali Reza.

Iranian officials have described recent disturbances as acts orchestrated by the "enemy," including some carried out by well-trained and armed "terrorists." The incidents have caused casualties among security personnel and civilians, as well as property damage.

The Secretary of Iran's Supreme National Security Council Ali Larijani has directed authorities to severely punish the "terrorists."

Meanwhile, Iran's police chief Ahmad-Reza Radan said on Sunday that the police had raised alert levels and arrested several leaders of the troublemakers during the operations on Saturday.

President Pezeshkian noted in the interview that the normal demands of the Iranian people are reasonable and justified, but they must realize that triggering riots and carrying out terrorist acts are the enemy's attempts to undermine the country. He urged the public to remain vigilant.

Also on Sunday, Iranian Parliament Speaker Mohammad Baqer Qalibaf warned that Tehran would regard U.S. and Israeli bases and facilities in the Middle East as "legitimate targets" if Washington takes military action against Iran. His remarks followed media reports saying U.S. President Donald Trump is "seriously considering authorizing a strike" against Iran.

Iranian state media reported that at least 109 members of Iran's security forces have been killed in clashes since the protests began 14 days ago. Meanwhile, human rights groups based outside the country said the number of protesters killed has exceeded 200, though the figure could not be independently verified.

The protests initially erupted over a sharp depreciation of the rial and sweeping subsidy reforms. Iranian authorities have blamed the unrest on foreign-linked agents and sanctions imposed by the United States.

Iranian president says government focusing on ensuring supplies amid protests