The North American auto sector is propped up by subsidies on both sides of the border.
What the article in the parent post doesn't mention is that Stellantis and GM received massive handouts from the Canadian government to retool factories in Canada, contingent on actually operating those factories and employing Canadian workers. Abandoning them and moving production to the U.S. (because of tariffs) violated their agreements. Hence, no more tariff relief for them.
North American auto companies are between a rock and a hard place right now, but it'd be folly for the Canadian government to let them ignore their agreements without consequence.
TL;DR: It would be more accurate to say Trump tried to steal a cookie from the Canadian cookie jar and is now acting shocked that his hand has been slapped. Canada is merely reacting here, and rather mildly at that. Calling off trade negotiations entirely is clearly not warranted and everyone should expect another TACO Tuesday.
I picked a random article. As I said, the news is doing a terrible job covering this and using the clickbait fodder Trump gives them instead of providing a more detailed analysis of what the real moves being made are and why they’re being made.
What the article in the parent post doesn't mention is that Stellantis and GM received massive handouts from the Canadian government to retool factories in Canada, contingent on actually operating those factories and employing Canadian workers. Abandoning them and moving production to the U.S. (because of tariffs) violated their agreements. Hence, no more tariff relief for them.
North American auto companies are between a rock and a hard place right now, but it'd be folly for the Canadian government to let them ignore their agreements without consequence.
TL;DR: It would be more accurate to say Trump tried to steal a cookie from the Canadian cookie jar and is now acting shocked that his hand has been slapped. Canada is merely reacting here, and rather mildly at that. Calling off trade negotiations entirely is clearly not warranted and everyone should expect another TACO Tuesday.