In a week that saw Toyota announce it’s moving some production from Mexico to the U.S., and a new KPMG survey finding four in 10 Canadian manufacturers have moved operations to the U.S. or are planning to do so, an international trade lawyer expects bigger manufacturing moves like Toyota’s on the horizon for Canada.
On Monday, Toyota said it will build a new US$3.6B plant in San Antonio, Texas, and move some production of its Tacoma pickup truck out of its Mexico plant over a four-year period.
U.S. President Donald Trump credited his country’s tariffs for the move, musing that it will be the largest car plant in the world.
“They’re moving into the United States, and again, they’re doing that to avoid paying the tariff, because if you build your product here [in the U.S.] you pay no tariff,” Trump said Wednesday from Ankara, Turkiye.
International trade lawyer William Pellerin says the tariffs are very much a factor for Canadian companies figuring out next steps, and he expects more big moves to the U.S.
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