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Brake for Business: Canada's auto parts dodge tariffs

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Toronto, Ontario -- Canada's automotive sector has been given a last-minute reprieve by the U.S.

A new bulletin from U.S. Customs and Border Protection has confirmed that Canadian auto parts that meet the rules under the Canada-United States-Mexico Agreement will not face the 25 percent import tariff being on other goods from May 3. The move clears up confusion caused by Trump’s executive orders.

The Trump Administration's move is far from being a signal of unconditional surrender to Canada or the automotive sector. In an effort to shift production away from Canada and Mexico, the U.S. is offering special incentives to manufacturers completing vehicles on its home turf.

The news comes shortly after Stellantis announced it is halting production at its Windsor and following a new report from General Motors that found the tariffs will cost the company US$5 billion this year.

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