Canada says U.S. trade deal must preserve robust auto industry after talks collapse

Canada cannot accept a trade deal with the United States unless it secures the survival of a robust Canadian auto assembly and parts industry, Ambassador Mark Wiseman told Reuters, offering no timeline for resumed talks after Friday’s collapse. President Donald Trump ordered 50% tariffs on $20 billion in Canadian goods, including wine, furniture, dairy, cement, clothing, fishing rods and hockey equipment, without exemptions for products covered by the United States-Mexico-Canada Agreement (USMCA), which had shielded most Canadian exports for 18 months. Unresolved issues included tariff cuts on medium- and heavy-duty vehicles. Ottawa announced a matched $20 billion retaliatory package effective September 8, with duties of up to 50%, while Toronto Mayor Olivia Chow called the dispute a lose-lose situation and warned about 5,000 Toronto textile, clothing and leather manufacturing jobs. Trump also announced 50% tariffs on Canadian automotive and steel imports that would take effect January 1, 2027, absent a deal. Wiseman said Canada will keep negotiating if talks generate positive momentum, remains optimistic an agreement can be reached and will preserve all options. U.S. Commerce Secretary Howard Lutnick said Canada had raised relief for medium- and heavy-duty trucks only in the final hours, while Chow said the measures could raise prices for Americans and criticized Trump’s comments about making Canada the 51st U.S. state.

The information on this website is generated using AI and we cannot guarantee its accuracy. Please use it as reference information only.