US-Canada Trade Talks Stall Over 15% Auto Tariff Floor as Trump Extends Deadline 3 Days
Updated
Updated · Jalopnik · Aug 19
US-Canada Trade Talks Stall Over 15% Auto Tariff Floor as Trump Extends Deadline 3 Days
3 articles · Updated · Jalopnik · Aug 19
Summary
Auto tariffs remain the last unresolved issue in U.S.-Canada trade talks, even after Trump delayed new tariffs by three days and said a deal had been reached but not finalized.
Canada wants the headline auto tariff cut to 10% or broader exemptions, while the Trump administration is holding to a minimum 15% rate despite partial breaks tied to U.S. parts content.
A vehicle assembled in Ontario with 50% U.S. content would face an effective 12.5% tariff under the current structure, underscoring how deeply integrated the two countries' auto supply chains remain.
Washington is also demanding that Canada drop retaliatory measures, including counter-tariffs on U.S. vehicles and provincial bans on American alcohol, while Ontario Premier Doug Ford has refused to lift the liquor ban before tariff relief.
The impasse leaves both sides preparing for failure as well as compromise, with Prime Minister Mark Carney saying Canada is ready for "all eventualities" if negotiations collapse.