TORONTO — If the U.S.'s tariffs are fully implemented and not withdrawn, the auto sector would "shut down," said Rob Wildeboer, executive chairman and co-founder of auto supplier Martinrea International Inc.
Most of the costs created by tariffs would not be borne by Martinrea directly, Wildeboer said, but the bigger issue is the effect they would have on the industry as higher prices would put pressure on consumer spending.
"Let the tariffs be implemented, have the industry shut down and demonstrate the real cost of tariffs, then we'll see some sanity restored, quickly."
U.S. President Donald Trump imposed sweeping tariffs on Canadian goods earlier this week, and Canada retaliated with tariffs of its own. However, Trump has now allowed a one-month exemption for the auto sector and some other goods.
"There are ... virtually no tariffs on our products tonight," said Wildeboer.
He made the comments on a conference call discussing the company's fourth-quarter earnings.
Martinrea reported a loss of $133.3 million in its fourth quarter, compared to earnings of $1.9 million a year earlier.
The Toronto-based company said sales totalled $1.2 million, down from $1.3 million during the fourth quarter of 2023.
The net loss per share for the quarter ended Dec. 31 came to $1.82, compared with earnings of two cents per share a year earlier.
Martinrea posted a full-year loss of $34.5 million, while its sales declined six per cent to $5.0 million.
CEO Pat D'Eramo said electric vehicle sales have been slow to ramp up, resulting in margin pressure across the automotive parts industry.
As a result, he said the company is focusing on growth opportunities in North America while maintaining its presence in Europe and working to minimize its China footprint.
This report by The Canadian Press was first published March 6, 2025.
Companies in this story: (TSX: MRE)
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