Canada Joins Talks on Auto Tariffs

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CBJ — Canada is joining Mexico and other European and Asian auto-producing countries this week to plot strategy ahead of the potential imposition of tariffs on vehicles and auto parts exported to the United States.

Japan and the European Union organized the meeting in Switzerland and Canada has chosen to attend to discuss what can be done about potential harsh levies being threatened by the U.S. Trump administration.

Trump has threatened to impose tariffs under Section 232 of the decades-old U.S. Trade Expansion Act. The legislation allows the president, under certain circumstances, to impose duties recommended by his commerce secretary under the notion that the goods being imported are a threat to national security. The fact Trump is using national security as a means of making Canada pay taxes has been viewed as a major insult in this country and shock in other countries.

Tariffs of up to 25%, plus the expected retaliatory measures, could add thousands of dollars to the price of a vehicle, kill jobs and cause significant harm to the global auto industry and perhaps decimate it entirely here in Canada, where the vast majority of automobiles produced are shipped for selling in the U.S.

@CanBizJournal

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