TORONTO — The new North American trade pact may have patched up one open trade wound, but for Canadian auto businesses, tariffs on steel and aluminum remain a festering sore.
When the metal tariffs were announced in March, Trump administration officials suggested that an exemption might be available for Canada and Mexico if they moved toward a deal to update the North American Free Trade Agreement, creating linkage between the two issues. But no deal was reached then, and when the tariffs took effect in May, no exemption was made.
And now, even after the countries agreed to terms on the new U.S.-Mexico-Canada Agreement, the 25 per cent tariff on imported steel and the 10 per cent tariff on aluminum remain in place. Canada's retaliatory tariffs on U.S. steel, aluminum and other products also remain.