Unifor President Warns Of Devastation Over Auto Tariff Threat

The president of Unifor is warning of devastation if U.S President  Donald Trump follows through on his auto tariff threat.

Speaking on AM800's the Morning Drive, Jerry Dias says a 25% tariff on Canadian assembled vehicles would cripple the industry.

He says the auto industry is the number one export industry in Canada worth $80-billion (B) a year.

"So when Donald Trump comes out with these types of comments, you better start to prepare," warns Dias.

Following the G7 Summit in Quebec, Trump was not happy with comments made by Canadian Prime Minister Justin Trudeau and Trump tweeted out that he was ordering a 'look at Tariffs on automobiles flooding the U.S. Market!'

Canada is the number one trading partner in 30 U.S states.

Dias says the comments and threats are 'over the top' but he doesn't believe anything will be done before the upcoming U.S primaries (in November).

"The [Canadian] government is going to have to take this seriously and we are going to have to retaliate in a meaningful way," he says.

Dias says if Trump follows through, it would impact the U.S industry as the U.S sells more cars in Canada than they do anywhere else around the world.

He believes these threats are more about politics than economics.

Dias is heading to Detroit to meet with UAW officials to discuss the problem with the low wages in Mexico pointing out Canada has closed four auto assembly plants, the U.S has closed 10 while Mexico has opened eight.

Click HERE to listen to the interview.