President Donald Trump says he is now free to acknowledge that he had only threatened to impose tariffs on Canadian-made cars “as a negotiating point” in NAFTA talks. So we’re not doing tariffs with respect to this, other than we use it as a negotiating point. Before the deal was struck, Trump had made no secret of the fact that he was using the threat of auto tariffs to pressure Canada and Mexico into concessions. He continues to threaten these “national security” auto tariffs, under “Section 232” of a U.S. trade law, on the European Union and other countries. The new deal effectively exempts Canada from potential Trump auto tariffs, though it does not say explicitly that Canada will not be hit.

Source: thestar October 02, 2018 22:07 UTC