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.