Patrick Brown, mayor of Brampton, Ontario, told reporters on Saturday that Canada will not accept a trade agreement with the United States that leaves the auto sector out. He echoed a familiar refrain that a bad deal is worse than no deal, reflecting growing anxiety in the Canadian auto supply chain.
Brampton mayor warns of bad deal
Brown said he hopes a new agreement can be reached but noted that proposals from the Trump administration have so far excluded the auto industry. "I hope that if there is a continued trade agreement with the United States, that we're going to continue to have free trade on auto," he said.
Tariff pressure and auto sector stakes
The mayor's comments came a day after Unifor announced that Stellantis is weighing the closure of its Brampton assembly plant. Union president Lana Payne said the company plans to move future Jeep Compass production to the United States, effectively idling the plant.
Stellantis told Global News that it will soon begin talks with the union and that its focus remains on finding a sustainable manufacturing solution for the Brampton facility.
Meanwhile, the United States has signalled a 50 per cent tariff on Canadian auto parts that could take effect on 19 August unless a new deal is struck. Sources familiar with the negotiations say the two sides are still far from a final agreement that would lower the current 25 per cent duty on CUSMA‑compliant vehicles and parts.
One proposal under discussion would set a tariff of between 10 and 15 per cent on such goods, but industry insiders argue any tariff threatens the viability of Canada's auto industry. Payne warned that Canada should not make concessions while the United States maintains punitive duties.
The United States, under former President Donald Trump, has also demanded that American alcohol be returned to provincial store shelves, a request that several provincial premiers have said they would consider if sufficient concessions are obtained.
Brown said the looming 50 per cent tariffs have already been "devastating" for North American manufacturers and expressed optimism that a deal including the auto sector can still be achieved before the deadline.
Based on reporting by Global News.