Alicja Siekierska, Yahoo! Finance
January 20, 2021
Joe Biden officially became President of the United States on Wednesday, and while experts expect his administration will bring stability to the Canada-U.S. relationship, many say his Buy American policies will be negative for the Canadian auto industry.
“I don’t think that a Biden administration is going to be especially positive for the Canadian automotive sector,” Flavio Volpe, president of the Automotive Parts Manufacturers’ Association, said in an interview shortly after Biden was elected.
“But it’s the end of the rule-by-clown wherein we wake up randomly to tariff threats that make it difficult to forward-plan where you allocate product and where you source metals. On balance, we might be a little better off, but it’s not as big a contrast on paper as people may think.”
Canada’s automotive industry is highly integrated with the U.S sector, with parts said to cross the border between six to eight times before a vehicle is finally assembled.
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