Why Canada is willing to sign USMCA with steel and aluminum tariffs still in place

November 14, 2018

Canada hoping to avoid bigger, more devastating U.S. auto tariffs

U.S. President Donald Trump appears to be closing in on what could become one of the most divisive economic policy decisions of his presidency.

Reuters is reporting the U.S. Commerce Department has finished its draft report on auto tariff recommendations, which has now been handed over to the White House.

In theory, Canada should have nothing to worry about. Given the current instability and unpredictability in the White House, however, Ottawa might be looking for a little insurance.

Canada is eager to sign the new USMCA agreement, and the side letter that comes with it, to formalize a guarantee that the Canadian auto industry is protected from any new American tariffs.

A source with direct knowledge of the situation tells CBC News that is part of the reason why Canada is willing to sign on to the new USMCA while American tariffs on steel and aluminum remain in place...

This was excerpted from the 13 November 2018 edition of CBC News.


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Topic(s): 
Rules of Origin & Trade Agreements / Trade Agreements
Information Source: 
Canada Border Services Agency (CBSA)
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