this post was submitted on 12 Mar 2025
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Canada
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There's a fairly easy path to get full auto production in Canada at expense of US production.
Ultimatum/cooperation with auto manufacturers to publicly support the policy is needed. Cheap electricity and aluminum/steel in Canada and expensive in US, along with exchange rate and health care cost advantage means making cars here.
So subsidize energy and materials inputs in Canada, with revenue from high export tariffs on energy and materials to US. Coordinate same with Europe. US rearming Ukraine is not going to get Russian/Belarus imports, so do the same to agriculture with Potash export tariffs. We don't need to put tariffs on US energy/materials inputs.
The ultimatum to auto manufacturers is threat of 200% tariffs (equivalent to ban) on US made cars if they don't prioritize Canada operations. Partial tariffs on individual manufacturers if they close plants.
US policy in Trump 1.0 was to impose a cost of $900k per steelworker job on US economy. We also already have a currently high subsidy for auto workers and Canadian projects. It is not a significant loss if industry will automate anyway over time, and massive value enhancement is available from Chinese imports.