Toronto, Ontario -- On Monday, U.S. President Donald Trump hinted he plans to rescind 25 percent tariffs placed on Canada's automotive sector.
During a White House press event, Trump told reporters, “[U.S. automakers] need a little bit of time because they’re going to make them here, but they need a little bit of time.”
The comment has been widely reported as a hint that his administration will lift 25 percent tariffs placed on Canada’s automotive sector on March 27.
The news comes hot on the heels of a report that found Canadians are net importers of auto parts. According to DesRosiers Automotive Consultants, about $82.2 billion of auto related products were produced in Canada last year. At the same time, the country imported about $142.7 billion in products.
The report also found about 95 percent of auto goods exported from Canada are bound for U.S. markets while about 57 percent of American-made auto exports are sold in the True North.
Despite this, Desrosier found Canadians actually pay about $8 billion more into the U.S. automotive sector than Americans pay into Canada’s. The imbalance is particularly stark when it comes to the sale of automotive parts, medium and heavy trucks and engines.
The Great White North does lead in some market segments. Last year, Canucks imported about $35.5 billion in U.S. light vehicles while Yankees imported about $43.8 billion worth of light vehicles made in Canada.
