The Globe and Mail reports in its Wednesday edition that when President Donald Trump on Monday threatened to roll out tariffs that would annihilate the Canadian auto parts industry, domestic executives showed understandable restraint. The Globe's Andrew Willis writes that Linamar executive chair Linda Hassenfratz and chief executive officer Jim Jarrel said in an e-mail, "It is a dynamic environment, and we are ready to navigate through it." In a plea for sanity, the executives said, "We remain confident that USMCA, or a version of such, will ultimately prevail." Magna International was even more circumspect, saying, "We generally try not to comment on ongoing trade negotiations or potential policy actions before the details are finalized." Linamar and Magna can't say publicly what RBC Capital Markets analyst Tom Narayan said in a report Monday, after Mr. Trump pledged to impose additional tariffs starting Jan. 1:
"Imposing 50 per cent tariffs on Canadian autos and parts while the EU, Japan, and Korea face a 15 per cent rate would disproportionately punish Ford, GM, and Stellantis. We view today's announcement as a threat, not a policy, and we think it is unlikely to be implemented in its current form."
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