Canadian Auto Parts Giant Linamar Braces for US Tariff Impact
Linamar Corporation (TSX: LNR), one of Canada’s largest auto parts manufacturers employing 34,000 people globally, is awaiting crucial details about new US tariffs scheduled to take effect on May 3.
The Guelph-based company, which supplies components to automotive plants across North America, faces significant uncertainty as the deadline approaches for what industry experts describe as potentially disruptive trade measures.
“It’s like an omelette. How do you uncook an omelette?” said Jim Jarrell, Linamar’s president and CEO, in an interview with CBC Radio’s Metro Morning. “You have all these ingredients from Mexico, and we have it from Canada and the US, and to uncook this, it’s really difficult and it’s not pragmatic on the auto parts side at all.”
Jarrell explained the company is seeking clarity on how the tariffs will affect the complex automotive supply chain, where components frequently cross borders multiple times during production. The US administration has indicated that parts complying with CUSMA (Canada-United States-Mexico Agreement) will remain tariff-free, but implementation specifics remain unclear.
If the tariffs persist, Jarrell indicated the company will “have to right-size and do what we need to do,” suggesting possible operational adjustments. However, he also noted there might be an opportunity amid the challenges if USMCA compliance becomes a competitive advantage.
The situation reflects broader concerns in Canada’s automotive sector, with other manufacturers like Cambridge-based Roadtrek already issuing temporary layoff notices to employees in anticipation of the tariff implementation.
Information for this story was found via CBC News, Financial Post, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
