The Business Development Bank of Canada says the tariff war with the United States will have a huge impact for the year.
The Windsor Essex Chamber of Commerce hosted an economic luncheon on Monday afternoon, which featured a number of speakers and BDC's Vice-President, Research and Chief Economist, Pierre Cleroux, was the keynote speaker.
The event was focused on what businesses locally, regionally, and across the nation can expected for 2025 - with a large focus on the tariffs.
Despite the concerns with the tariff situation, the BDC remains hopeful that the impact will not be long-term and there will be an end to the uncertainty sooner rather than later.
While the conversation did touch on how the nation was being impacted, there was a heavy focus on the Windsor-Essex region due to the automotive sector.
Eric Larson, Chief Executive Officer of the Downtown Detroit Partnership, says it's sad to see what has happened between two countries that have been great friends and allies.
"To be having this conversation at this moment in time when there is so much opportunity is really a bit disappointing. But, the encouraging part is there is a strategy if we stay together, if we stay united. There is a strategy because this will come to an end, hopefully sooner rather than later."
He says there is huge concern on both sides of the border in the automotive sector.
"As there is a better understanding in Washington of the ripple effect that is now ripping through this economy, and ultimately the manufacturing base of the United States, there will be an adjustment, and it will be relatively quick. But there is already significant amount of concern, and already the signs of some damage."
Larson says there are a number of opportunities to help the tariff situation.
"Those are in things like the clean energy sector, things like climate migration, entrepreneurial opportunities that are coming out of our universities, those are things that are outside of the narrative that's currently taking place. And quite honestly, represent a unique strength, a unique set of skills that this region has."
Meanwhile, Pierre Cleroux, BDC's Vice-President of Research and Chief Economist, says there's a lot of uncertainty.
"So far what we are seeing is more slow down of the economy. 2025 is going to be very slow, and Windsor is going to be close to zero growth. But all will depend on how many tariffs are going to be imposed."
He says many investments are on pause, but he hopes with more clarity on the tariffs that companies will reinvest.
"They will pivot, they will look for other opportunities, or they will try to get more competitive to cover part of the tariff. The problem now is there's so much uncertainty, when I meet clients people are telling me 'we don't know what to do because we don't know what will be the situation in two weeks, or in two months'."
Cleroux says getting rid of interprovincial barriers would have a positive impact across Canada.
"It could go quickly, it's just a matter that everybody around the tables agrees that we will drop this regulation, or we harmonize our regulations. So, with the will, they can do it. When they go and negotiate, are we going to see the same momentum? We'll see. But this is a good time to do that."
Cleroux adds that the "Buy Canadian" initiative has been a big help for the nation, and the momentum needs to continue.
U.S. President Donald Trump imposed a 25 per cent tariffs on all foreign-made automobiles.
On Monday, Trump suggested that he might temporarily exempt the auto industry from tariffs he previously imposed on the sector, to give carmakers time to adjust their supply chains.