Ontario Premier Urges Economic Retaliation Against U.S. After Stellantis Moves Production
TORONTO - Ontario Premier Doug Ford called for economic retaliation against the United States on Wednesday, blaming President Donald Trump for auto company Stellantis' decision to move production of its Jeep Compass from Canada to Illinois.
Stellantis announced this week that it would invest $13 billion in expanding its manufacturing capacity in the U.S., shifting production of the SUV from Brampton, Ontario. Ford said he was "sick and tired" of rolling over and accused Trump of being a "real piece of work."
"We need to fight back," Ford said. "If Prime Minister Justin Trudeau can't reach a trade deal with President Trump, then we need to hit back with tariffs."
The comments come as Canada is negotiating to reduce tariffs with the U.S. Trump has been urging American automakers to move production to the U.S.
Stellantis' decision to shift production to Illinois was seen as a blow to Ontario's economy, which had been counting on the company to continue producing the Jeep Compass in Brampton.
The company's announcement was part of its plan to expand its manufacturing capacity in the U.S. and invest $13 billion in American plants.
Ford's comments were met with support from some business leaders, who said they agreed that Canada needed to take a tougher stance against the U.S. in trade negotiations.
"We need to stand up for ourselves and not be bullied by the U.S.," said one business leader, who asked not to be named.
However, others cautioned that economic retaliation could have unintended consequences and hurt Canadian businesses.
"It's a complex issue and we need to think carefully about our next steps," said another business leader.
The trade negotiations between Canada and the U.S. are ongoing, with Trudeau and Trump set to meet in the coming weeks to discuss a new trade deal.
In the meantime, Ford's comments have added fuel to the debate over how Canada should respond to Stellantis' decision to move production to Illinois.
Background:
Stellantis is one of several major automakers that has announced plans to shift production from Canada to the U.S. in recent years. The company's decision to move production of the Jeep Compass from Brampton, Ontario to Illinois was seen as a blow to Ontario's economy.
The trade negotiations between Canada and the U.S. have been ongoing for months, with both sides struggling to reach an agreement on tariffs and other issues.
Additional Perspectives:
Economists say that Stellantis' decision to shift production from Canada to the U.S. is a sign of the changing global auto market.
"The auto industry is undergoing significant changes, including the rise of electric vehicles and autonomous driving," said one economist. "Stellantis' decision to move production to the U.S. reflects these changes."
Others say that Ford's comments are a sign of frustration with the slow pace of trade negotiations between Canada and the U.S.
"We need to get a deal done quickly, but we also need to be careful not to hurt Canadian businesses," said another economist.
Current Status:
The trade negotiations between Canada and the U.S. continue, with Trudeau and Trump set to meet in the coming weeks to discuss a new trade deal.
In the meantime, Ford's comments have added fuel to the debate over how Canada should respond to Stellantis' decision to move production to Illinois.
Next Developments:
The outcome of the trade negotiations between Canada and the U.S. will be closely watched by business leaders and economists.
As the talks continue, it remains to be seen whether Canada will take a tougher stance against the U.S. or seek to reach a compromise on tariffs and other issues.
*Reporting by Fortune.*