Just hours before it was set to take another tariff hit, Canadian automotive industry can breathe a partial sigh of relief.
New guidance from a U.S. border and customs agency suggests that Canadian automotive parts that follow the rules of the Canada-U.S.-Mexico trade agreement won’t be subject to new import tariffs.
On X, the head of Canada’s Automotive Parts Manufacturers’ Association noted the new guidance from U.S. Customs and Border Protection, which says CUSMA-compliant parts will face a 0 per cent tariff, while others face a 25 per cent rate.
“It looks like the White House agrees that tariffs on Canadian parts would shut down American auto,” posted Flavio Volpe, CEO of APMA.
The guidance came just over a day ahead of May 3, when all automotive parts were set to get hit with the 25 per cent tariffs.
