No immediate car tariffs after U.S. trade meeting; at stake $350 billion in autos and parts imported to the U.S.

Although auto-makers have made it clear to the U.S. administration that any auto tariffs will adversely impact supply chains between Canada and the U.S., the threat remains despite a temporary hold on the plan. General Motors and Toyota Motor Corp, especially, would be strongly impacted by any tariffs. President Donald Trump convened with trade advisers over the issue, particularly the premise of “national security implications.” National security is the basis under which the proposed auto tariffs, and current tariffs on steel, would be implemented despite trade agreements.

Tariffs would add between US$2,270 and $6,875 to the cost of each car

 

Although the new U.S.-Mexico-Canada Agreement contains a side-agreement to limit tariffs on cars, it is subject to a cap. The impact of thousands of dollars in tariffs would be significant, initially in terms of auto sales, and later in terms of shifting supply chains.

 

 

The respite may be temporary, as the draft report on a Commerce Department investigation is to be revised and resubmitted. Ultimately, the President has final say, but will likely be guided by recommendations of the Commerce Department and Secretary Wilbur Ross. Ross has until February to present the report with findings from the investigation.

After the report is submitted, the President has 90 days to act, depending on whether the department concluded there was a security threat. His options are tariffs and quotas or no restrictions, in compliance with the USMCA. Currently, Europe is also exempt from auto tariff’s, pending negotiation with the U.S. The EU Trade Commissioner Cecilia Malmstrom is in Washington this week with plans to meet U.S. Trade Representative Robert Lightizer.

At the Commerce Department review meeting was Commerce Secretary Ross, Trade Representative Robert Lighthizer, National Economic Council Director Larry Kudlow, Treasury Secretary Mnuchin and Advisor Jared Kushner.

Did you miss this?

Other Popular Stories

  • Tesla Announces New All-Electric Semis
  • Ottawa medical device company receives government support to expand production
  • Five defence industry technologies — right out of science fiction — that are real today
  • Car Tech Trends from CES 2018
  • Artemis update: first human mission to the mysterious lunar South Pole
  • Flying car maker looking for first orders for its sports car/gyrocopter PAL-V
  • Magna International posts strong sales gains in third quarter
  • Offshore Wind Power Generation is 125 Times Better for Taxpayers Than Oil or Gas: Gizmodo
  • Canada should ease foreign ownership rules for uranium, says Sask premier
  • Exploring the Sun: The Parker Solar Probe Mission and Latest Discoveries from NASA
  • Forestry sector providing job relief for former oil patch workers
  • SPPCA's new landing gear facility opening in Mississauga
  • Exports, especially oil, driving Canada's growth: EDC
  • Trucking industry moving toward use of EOBRs
  • Pratt & Whitney Canada to invest $1 billion in engine development
  • Avalon Advanced Materials creates jobs to make lithium ion batteries from Kenora-area mine
  • Bombardier CSeries finally flies the skies of Paris
  • Bombardier to build 170 high-speed rail cars for Siemens
  • Mercedes to cut emissions from cars and their production in half by 2030
  • Miners struggling with higher costs, lower prices
Scroll to Top