A report from the U.S. Commerce Department on the potential national security threat of auto imports has brought back the threat of US Auto tariffs.
The "232" Report is the same one used as justification for the steel and aluminium tariffs. In negotiating the U.S. Canada Mexico Agreement, Canada secured a side letter excluding it from the threat of auto tariffs.
Essex MP Tracey Ramsey says that trade deal has not yet been approved by the U.S. Congress.
"Canada should be excluded from that but from what we've seen under the steel and aluminium tariffs it's not always the case that what we think is a logical argument from Canada ... is hitting the presidential office," she says. "Even though in the USMCA we were able to have a side letter carving us out from the auto tariffs in particular, that deal is not signed and doesn't show any indication that it will be anytime soon"
Ramsey says tariffs imposed by the U.S. would devastate the auto-sector.
"This would really be a death blow to our manufacturing sector, which is already under immense pressure and you know just such uncertainty and difficulty with the steel and aluminium tariffs because of course cars are made of steel and aluminium," added Ramsey.
The New Democrat says if the US does move in the direction of imposing auto tariffs the Trudeau government needs to take strong action.
She points out the retaliatory tariffs Canada imposed to battle the steel and aluminium tariffs have not had much effect.