Trump tariff threats dominate Windsor mayor’s state of the city speech

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In the face of American tariffs that could sink Canada into a deep recession and devastate his border city, Mayor Drew Dilkens is calling on Windsorites to stand united.

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Rather than the traditional listing off of his and the city’s accomplishments over the past year, Dilkens on Wednesday spent the majority of his State of the City address discussing the 25-per-cent levy U.S. President Donald Trump plans to impose on Canadian goods and the damage that would do to the region. Trump has even mused about tariffs of up to 100 per cent on the Canadian auto industry.

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“We are going to need to lock arms right now in this moment and not let go if it gets rough,” he told a packed ballroom at the Windsor-Essex Chamber of Commerce sponsored luncheon.

“I’m not going to sugarcoat it for anyone in this room, and I hope I’m dead wrong, but it may get rough, and if it does, we’re going to need to stick together.”

Dilkens even referred to the “madness” of the situation.

With Detroit’s skyline behind him as he spoke at the St. Clair Centre for the Arts, Dilkens likened the economic threat Windsor faces to the cannons placed along the waterfront in Detroit and pointed at what was then part of Upper Canada during the War of 1812.

Time for Windsorites to stand up … be more assertive

Even though Trump’s threats come at a time when Windsor is otherwise riding a wave of new economic investment and unprecedented growth, Dilkens said he is not angry. Instead, he’s “resolute to win,” and views the U.S. threat as a “rallying cry” and hopes it has the same effect on others.

“Windsorites are tough. Windsorites are determined,” Dilkens said. “Some may even say Windsorites are stubborn, but we certainly punch above our weight.

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“In my view, it’s time for Windsorites to stand up and start to be more assertive.”

This week, the White House said that different levies imposed on Canada will stack on top of each other. Tariffs of 25 per cent on all steel and aluminum imports are set to take effect on March 12. He had earlier threatened to impose a 25-per cent tariff on all goods from Canada and Mexico — 10 per cent on Canadian energy exports —  but announced a 30-day pause after the countries made concessions on border security. Those duties are set to start on March 4, but Canada and the provinces are lobbying to get the Americans to back off.

“Few in our country have as much at stake as those in this room today, your employers, your employees, your colleagues and your families,” Dilkens told the room full of local politicians, municipal administrators, and leaders of prominent area businesses and organizations.

Dilkens painted a picture of the “swift and dramatic impacts” Trump’s tariffs will have on the region. Within weeks, he said, vehicle prices would rise and sales would drop. Original equipment manufacturers (OEMs) would adjust inventory, “meaning less people needed to build fewer cars,” leading to widespread layoffs. Parts suppliers would reduce production and send workers home.

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“As the cascading effect of lower demand works its way through the supply chain, you’ll ultimately find the young person behind the counter at Tim Hortons out of a job as disposable income drops while everyone saves money in an effort to weather the storm,” he said.

Dilkens warned of “casualties on all sides,” with Americans paying more for goods and groceries, and businesses waiting until “more favourable environments” to invest capital, all while the American president angles for Canada’s natural resources.

“The president also seems to lack an understanding of Canadians, and the juxtaposition regarding our admiration and appreciation for our American friends, while strongly wanting to maintain our Canadian identity and pride.”

Windsor, he said, is “ground zero for the impacts of tariffs.”

The mayor urged folks to buy Canadian, wear the maple leaf with pride, and fly the flag this weekend, as five former Prime Ministers this week urged Canadians to do.

“Do all the little things that send signals that we won’t be taken advantage of by a bully,” Dilkens said. “Stand tall. Be proud to be Canadian, but please — and I know this can be hard — don’t boo at the U.S. national anthem.

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“We are better than that, and we like our U.S. neighbours too much to hold them accountable for the actions of a single American.”

Dilkens remains positive about Windsor’s long-term economic outlook. In addition to the $6-billion NextStar Energy electric vehicle battery plant and its 2,500-plus jobs, the city has welcomed 39 new major investments and expansion projects since 2023, he said. Those business investments will create about 2,700 more jobs and “generate over $830 million in capital spend within our community.”

He noted that the Windsor area posted the best business conditions index score in Canada last summer, according to Statistics Canada, and that the Conference Board of Canada has Windsor outpacing major Canadian cities with the highest rate of GDP growth per capita.

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The mayor acknowledged other local challenges. Windsor’s unemployment rate remains “stubbornly high,” and “major cost-of-living pressures” are “squeezing household budgets,” making affordability a top issue for many.

What projects is the city working on?

Dilkens listed a new downtown library branch, the location of which he said has not yet been selected; a new and permanent home for the city’s homelessness and housing help hub; and entering into an agreement with an unidentified private developer for more than 600 residential units on the Caron Avenue parking lot property.

The city is also preparing to invest heavily in vacant Sandwich South lands near the airport with the goal of creating the closest industrial park to the U.S.-Canada border on the Canadian side.

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