When the United States and Canada began showing signs of ending their\ntariff dispute, negotiations between the two countries instead collapsed\nonce again, with the US subsequently imposing a 50 per cent tariff on\nC$20 billion worth of Canadian goods. In response, Canada said it would\napply tariffs of the same magnitude, as reported by Carscoops on Monday\nlocal time.<\/p>\n
The new tariffs on Canadian goods cover a range of products, from ice\nhockey equipment to dairy products, alcoholic beverages and flower\nbulbs. More importantly for the automotive industry, the breakdown in\nnegotiations was reportedly partly caused by the failure of Washington\nand Ottawa to reach an agreement on the treatment of vehicles\nmanufactured in Canada.<\/p>\n
Canadian Prime Minister Mark Carney said US negotiators changed\npreviously proposed terms at the last minute, including reducing tariff\nrelief for Canadian-built vehicles. Washington has a different version\nof events. US Trade Representative Jamieson Greer claimed Canada made\nnew demands and withdrew from previous commitments when a deal appeared\nto be nearly reached. Greer said the US had previously offered tariff\nreductions affecting the automotive, steel and lumber sectors.<\/p>\n
Canada does not plan to remain silent as the new tariffs begin to\ntake effect. Carney promised a dollar-for-dollar response, with\nretaliatory tariffs set to take effect on 8 September. Those tariffs\nwill target a number of sectors, including steel, dairy products,\nhousehold appliances, agricultural equipment, pulp and paper, and\nelectronics.<\/p>\n
For automotive manufacturers, another trade war is a highly\nundesirable situation. The US, Canada and Mexico have spent decades\nbuilding a deeply integrated manufacturing network, with vehicles and\ncomponents routinely crossing borders during the production process, in\nsome cases multiple times. The latest dispute also raises difficult\nquestions about the future of the United States-Mexico-Canada Agreement\n(USMCA) that links the three countries.<\/p>\n
Carney accused the Trump administration of using economic integration\nas a weapon, while asserting that Canada will not sacrifice its\nsovereignty or its key industries, including the automotive industry, to\nreach a deal. Both sides are likely to return to the negotiating table\nbefore too long. However, until a deal is finally reached, car\nmanufacturers need to prepare for significant tariff-related costs that\ncould affect the prices consumers pay for new cars.<\/p>\n
The impact on the automotive industry is a concern because the US and\nCanada have an integrated vehicle manufacturing network, with vehicles\nand components able to cross the border between the two countries during\nthe production process. Car And Driver reported in July that vehicles\nproduced in Canada include the Toyota RAV4, Honda Civic and CR-V, Lexus\nNX and RX, and Chevrolet Silverado. Differences over the treatment of\nCanadian-built vehicles were also one of the issues in the latest\nnegotiations between the two countries.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/us-canada-trade-war-reignites-canadian-built-cars-affected-1787583173", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }