Even with hopeful signs on NAFTA and a trade detente between the U.S. and the European Union, Canada still isn’t out of the woods when it comes to auto tariffs.
This story by Bloomberg appeared in Automotive News Canada.
U.S. Trade Representative Robert Lighthizer said Thursday he hopes a deal in principle on the North American Free Trade Agreement is within reach, a day after Canadian and Mexican ministers indicated a pact could be signed in the next few months. U.S. President Donald Trump and European Commission President Jean-Claude Juncker also agreed Wednesday to suspend new levies while trade negotiations continue.
But Canadians shouldn’t breathe a sigh of relief just yet, according to Dan Ciuriak, senior fellow at the Centre for International Governance Innovation. The latest moves by the Trump administration are tactics designed to shore up the president’s base ahead of midterm elections, he said, and nothing has changed on the U.S. inquiry into whether imported light-duty vehicles constitute a national security threat, known as a Section 232 investigation.
“This is more pointing to the likelihood that the Americans would not move on the 232 auto tariffs before the election,” Ciuriak said. “Or if they do move, it’s going to be just at election time, before the pain has a chance to settle in.”
