{"id":10245,"date":"2025-02-04T00:48:35","date_gmt":"2025-02-04T08:48:35","guid":{"rendered":"https:\/\/iamaw16.ca\/?p=10245"},"modified":"2025-02-04T00:48:35","modified_gmt":"2025-02-04T08:48:35","slug":"iam-canada-north-american-aerospace-union-presses-trump-to-pause-tariffs-on-canada-reuters","status":"publish","type":"post","link":"https:\/\/iamaw16.ca\/?p=10245","title":{"rendered":"IAM Canada – North American aerospace union presses Trump to pause tariffs on Canada | Reuters"},"content":{"rendered":"

Original article published by Reuters:\u00a0North American aerospace union presses Trump to pause tariffs on Canada | Reuters<\/a><\/strong><\/p>\n

Mon, February 3, 2025 at 1:35 p.m. EST\u00a03 min read<\/em>
\nBy Allison Lampert<\/em><\/p>\n

(Reuters) \u2013 The United States should pause tariffs on Canada as it did on Mexico, the head of the largest North American aerospace union told Reuters on Monday, as industry executives weighed the impact of fresh duties on plane parts and jets.<\/p>\n

U.S. President Donald Trump announced executive orders that would impose tariffs of 25% on Canadian imports and 10% on goods from China starting on Tuesday. Trump had planned a 25% tariff on Mexico, but that was delayed after a Monday call with Mexico\u2019s president.<\/p>\n

\u201cI would think they would do the same thing for Canada,\u201d said Brian Bryant, international president of the International Association of Machinists and Aerospace Workers (IAM), which represents workers at plane makers such as Boeing.<\/p>\n

\u201cWe just have so many jobs in the U.S. that export aerospace goods to Canada for their programs up there and we wouldn\u2019t want to see those jobs jeopardized by that.\u201d<\/p>\n

Bryant said Trump should meet with unions such as the IAM to hear workers\u2019 views. Some IAM members voted for Trump and probably did not envision \u201cthat their jobs are going to be impacted by the potential of what he might do with tariffs,\u201d he said.<\/p>\n

Tariffs would add complexity and higher costs to plane making, with a tight supply chain limiting firms\u2019 ability to find alternative parts. Canada exported C$12.8 billion ($8.78 billion) of aerospace and defense-related products to the U.S. and imported C$10.2 billion worth, according to 2023 government data.<\/p>\n

Bombardier shares tumbled as much as 13% before paring losses to around 2%. The Canadian business jet maker said in a statement it will use the coming days to analyze multiple scenarios to avert fallout.<\/p>\n

The tariffs\u2019 duration is unclear and Trump\u2019s penchant to shift quickly makes planning for such scenarios more difficult. A trade war would hurt aerospace\u2019s sprawling supply chain at a time when Boeing, a key U.S. exporter, is trying to boost plane production following lower 2024 output.<\/p>\n

Boeing has $87.5 billion in inventory from suppliers and aircraft parts are exempt from tariffs under a 1979 treaty that includes the U.S. and Canada, although it is not clear if that agreement would prevent Trump from imposing tariffs on the sector.<\/p>\n

Aerospace products and plane making materials steel and aluminum are targeted by Canada for a second round of retaliatory tariffs in three weeks.<\/p>\n

PASSING ON COSTS<\/p>\n

Companies that buy aluminum from Canada to make sheets and plates or extrusions for seat racks would likely have no choice but to pass on costs to plane makers, analysts said.<\/p>\n

Boeing, European rival Airbus, which also produces jets in Canada and the United States, and suppliers RTX and Honeywell declined to comment.<\/p>\n

\u201cThe likely outcome will be price increases,\u201d said Frederic Loiselle, a co-founder of Montreal-based private equity firm Thrust Capital Partners, which specializes in small aerospace firms. \u201cThere is no capacity to turn to and if it was easy to put in place, the industry would have settled its supply chain issues long ago.\u201d<\/p>\n

Loiselle said some of Thrust\u2019s companies had been buying aluminum parts ahead of Trump\u2019s weekend tariff announcements.<\/p>\n

The business jet sector would be hard-hit if tariffs persist, said U.S. aerospace analyst Richard Aboulafia. RTX\u2019s Pratt & Whitney Canada produces engines for some business jet models from General Dynamics\u2019 Gulfstream Aerospace and Textron.<\/p>\n

Dak Hardwick, vice president of international affairs at the U.S. trade group Aerospace Industries Association, said tariffs on Canada and Mexico could change the \u201cpositive trajectory\u201d that has made the U.S. a top aerospace exporter.<\/p>\n

($1 = 1.4585 Canadian dollars)<\/p>\n

(Reporting By Allison Lampert in Montreal. Additional reporting by Tim Hepher in Paris; Editing by Rod Nickel)<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

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