A new report suggests that if Canada can’t convince President Donald Trump to drop all auto tariffs, it should negotiate a new auto trade agreement with the U.S. and Mexico that would impose permanent import tariffs but grant automakers a break if they meet minimum local production requirements.
The strategy outlined in the report, released Thursday by the C.D. Howe Institute, draws inspiration from the 1965 Canada-U.S. Auto Pact.
Author Stephen Beatty, a former Toyota Canada executive, argued that in response to any U.S. tariffs, Canada should impose its own surtax on imports of U.S. light-duty vehicles….