'Sluggish sales, costlier credit, and potential layoffs': Expert warns of impact of tariffs on vehicles from Canada, Mexico, South Korea, Japan, Germany, Italy, Britain
The chief executive officer of a global financial advisory firm is warning about potential layoffs stemming from US President Donald Trump's 25% tariff on imported vehicles.
Nigel Green, CEO of deVere Group, said Trump's tariffs will not lead to more jobs or better wages, Reuters reported.
"It leads to sluggish sales, costlier credit, and potential layoffs — exactly what a fragile economy doesn't need," he said, as quoted by the news outlet.
"Tariffs won't drive carmakers home. They'll drive prices up, relationships down, and America's global standing into reverse."
Green made the remarks as US President Donald Trump slapped a 25% tariff on imported cars, such as cars and light trucks. It is expected to take effect on April 3, impacting vehicles that were built in Canada, Mexico, South Korea, Japan, Germany, Italy, and Britain, Reuters reported.
The warning of layoffs comes as retrenchments also take place across the world resulting from Trump's tariffs.
Last month, the Canada Metal Processing Group announced that it will reduce its workforce by 140 people in Ontario and Quebec ahead of the 25% US tariffs on the steel sector.
"This was an extremely difficult decision for our company, and not one that was made lightly, but necessary for the business in the current environment," said MPG Canada president Matt Walker in a statement.
"Our employees are the backbone of our operations. They work hard, day in and day out, to create steel products which are recognised for their quality and good customer service while being an integral part of the Canada-U.S. supply chain."
Ontario-based Algoma Steel has also laid off 27 people, with further retrenchments coming if the company cannot find new Canadian customers, Reuters reported.
Canadian Prime Minister Mark Carney said on Wednesday that Trump's auto tariffs are a "direct attack."
"We will defend our workers. We will defend our companies. We will defend our country," he said, as quoted by The Associated Press.
Ontario Premier Doug Ford, in a statement posted on X, said he has also spoken with Carney and agreed that Canada needs to "stand firm, strong, and united."
"I fully support the federal government preparing retaliatory tariffs to show that we'll never back down," he said.
