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.

Topic(s)

Trade Agreements

Information source

Canada Border Services Agency (CBSA)

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The foregoing information is provided for informational purposes only and is not intended as, nor should it be considered, professional advice or a substitute for conducting your own thorough research and review. Before making any decisions or taking any action based on the information provided, you should conduct your own independent investigation and/or seek professional advice from a qualified expert in the relevant field. The CSCB disclaims all liability for actions taken or not taken based on the information provided.

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