Auto tariffs a sticking point
Here's the worst-case scenario for Canada. They sign a new NAFTA deal, giving up dairy and other sticking points. Then right away the US hits Canadian autos with heavy tariffs on 'national security' grounds, like it has for steel and aluminum.
The Globe & Mail reports Canada isn't getting the guarantees it wants.
"While Canada is seeking an absolute guarantee that Mr. Trump will not impose the levies, negotiators also expect the United States to push for a more complicated agreement concerning the auto sector - similar to one it made last month with Mexico. Under the terms of that deal, contained in a side letter that is separate from the actual text of the North American free-trade agreement, most automotive exports from Mexico are exempt from tariffs, but Washington is allowed to impose levies on vehicles that exceed a specific export quota and do not comply with stricter content rules," the report says.
