Canadian, Asian, European And Mexican Officials To Meet Over U.S. Auto Tariffs

Automakers who build vehicles in Canada, Mexico, Europe, and Asia are meeting this week to discuss the best way to respond to potential tariffs on vehicles exported to the United States.

A meeting organized by Japan and the European Union will be held on Tuesday in Geneva, Switzerland and bring together vice and deputy ministers from Canada, the EU, Japan, and South Korea, The Globe and Mail reports.

President Donald Trump recently ordered an investigation into whether vehicles imported into the United States pose a threat to national security under Section 232 of the U.S. Trade Expansion Act. Tariffs could reach as high as 25 per cent if implemented.

The Canadian government says it will respond to auto tariffs with its own countermeasures. Critics assert that tariffs, as well as subsequent retaliatory measures, may increase the prices of vehicles by thousands of dollars and significantly harm the auto industry.

“The meeting is meant to bring together major auto-producing nations so we can discuss our concerns over the U.S. Department of Commerce’s section 232 investigation of automobiles and parts,” a Canadian official said of the talks.

It is reported that the meeting could lead to a coordinated response among car manufacturers outside of the United States.

The United States has already implemented hefty tariffs on steel and aluminum imports but those placed directly on vehicles are tipped to have the most detrimental effects.

Last week, President Donald Trump appeared to back off his tariff threats after a meeting with the president of the European Commission. However, the fact that the meeting in Geneva is going ahead indicates that car manufacturing nations are still concerned.

  • Mr. EP9

    Maybe now we can all come to a fair agreement that all parties are on board with. Naah, I don’t see that happening.

  • Mi Lito

    If the tariffs go up, that means cost will go to the consumer. Why not stick to no tariffs and help the people afford cars? People buying more cars will help the economy even more and every country involved will benefit.

    • FlameWater

      Just think about the poor rich person who can barley afford his 5 series…

  • Six_Tymes

    there are two sides to this, and not until you read pages upon pages of documents do you come to understand both sides.

  • FactChecker90803

    These manufacturers relocate to countries that have High Import Tariffs like Brazil, China, India, Mexico and Thailand to avoid does Tariffs on Cars and Parts. Yet when the 800 Lb Gorilla wants fair and reciprocal action they call Go Ape. Well as the car Manufacturers Say, The Customer Is Always Correct, and the USA is by far the Richest Customer, sure there are bigger markets like China and India, but the average price of a car in does markets is low. In India the average car is about 4.5-5.0 lakh’s about $6,700 to $9,500. In China, they have cars that sell for 16,000 yuan or about $2,500.

  • FactChecker90803

    It would never come to that, there will always be a standard for the developed and undeveloped markets.

  • brn

    I’m sure they’re getting together, so they can speak with their own governments about reducing protectionism in their own countries. That must be it.

  • FactChecker90803

    It’s up to GM, FCA and Ford, problem is that they don’t consider themselves to be American companies, there multinational, hell GM sells more imported cars, trucks and SuVs in the USA as a percentage of there overall sales then Honda, Nissan and Toyota. Did you know that GM is the Biggest seller of Chinese made cars outside of China, they sell more Chinese made cars in the USA then all the other manufacturers combined.

    GM is winding down production of the Gamma2 based Sonic Sedan and Hatchbacks in Lordstown, instead of utilizing the plant to produce the Chevy Trax and Buick Encore both based on the Gamma2 or produce the new Blazer, GM has decided to source the Trax and Blazer from Mexico and the Encore from China. No wonder GM is so adamant against import Tariffs.

  • FlameWater

    How easily people forget that all of these countries have huge tariffs on American made vehicles.

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