US-Canada trade talks hit roadblock over auto tariffs

Automotive tariffs have emerged as a major obstacle in US-Canada trade talks, as President Donald Trump and Prime Minister Mark Carney spoke by phone on August 17, just over 24 hours before new US tariffs on Canadian products take effect, according to people familiar with the matter.

Canadian authorities are demanding that tariffs on vehicles exported to the US be reduced to 10% or that exemptions be extended for cars using American-made components. The administration of US President Donald Trump, in turn, is insisting on a minimum tariff rate of 15%, Caliber.Az reports, citing Bloomberg.

Canadian negotiators held consultations in Washington over the weekend, hoping to prevent a tariff increase that could come as early as this week. 

Among those representing the US in the talks were US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick.

Speaking to reporters on August 17, Carney offered few details on the trade talks, but said his government was preparing for “all eventualities” if the two sides fail to reach an agreement.

Meanwhile, Canadian officials have been examining potential retaliatory measures should Trump proceed with the new round of tariffs.

By Jeyhun Aghazada