By David Shepardson, Nora Eckert and Kalea Hall <\/p>\n
Aug 17 (Reuters) – U.S. and Canadian trade negotiators were haggling over a potential reduction in President Donald Trump’s tariffs on Canadian \u200cvehicles to 15% after some value content deductions, three sources familiar with the talks said \u200con Monday. <\/p>\n
The countries face a Wednesday deadline for steep new U.S. duties on $20 billion worth of other Canadian goods. <\/p>\n
If a \u200bdeal can be reached, it would mark a significant reduction from Trump’s current 25% “Section 232” national security tariff on autos imports that has threatened assembly line shutdowns in Canada. <\/p>\n
A sticking point remains over a U.S. demand that only the value of U.S.-specific content could be deducted from the autos tariffs, in line \u200cwith the current U.S. practice, the \u2060sources said. Canadian negotiators are pushing for all North American content to be deducted, including parts from Canada and Mexico, the sources added. <\/p>\n
That kind of broader \u2060regional value content deduction could push the effective U.S. tariff rate on North American-built vehicles down to single digits, auto industry officials said. That would be far below the 15% rate currently paid on U.S. imports \u200bof vehicles \u200bfrom Japan, South Korea and the European Union that \u200bare the North American auto industry’s \u200ckey competitors, and 10% on most British vehicles. <\/p>\n
Canadian and U.S. officials have been meeting daily over the past week to try to avert the latest U.S. tariffs and resolve several longstanding trade irritants between the North American neighbors. Issues include Canada’s retaliatory duties on some U.S.-built autos and steel, moves by several Canadian provinces to pull American liquor from store shelves and U.S. complaints about Canada’s allocation \u200cof dairy import quotas. <\/p>\n
The negotiations are separate from broader talks \u200babout renewing the trilateral U.S.-Mexico-Canada Agreement on trade. The U.S. \u200bis currently only negotiating with Mexico. <\/p>\n
Some auto \u200bindustry officials told Reuters that either option to reduce U.S. vehicle import \u200ctariffs to 15% would be an improvement over \u200bthe current 25% tariff, \u200bwith deductions for U.S.-specific content or for regional content. Japan, the EU and South Korea currently have a significant cost advantage to export cars to the U.S., with a 15% tariff \u200brate and no regional content \u200crequirements that would restrict their use of cheaper Chinese parts. <\/p>\n
(Reporting by David Shepardson and David \u200bLawder in Washington and Nora Eckert and Kalea Hall in Detroit; Writing by David \u200bLawder; Editing by Mark Porter and David Gregorio) <\/p>\n","protected":false},"excerpt":{"rendered":"By David Shepardson, Nora Eckert and Kalea Hall Aug 17 (Reuters) – U.S. and Canadian trade negotiators were…\n","protected":false},"author":2,"featured_media":172022,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[17,54867,54868,54866,202,54869,45725],"class_list":["post-172021","post","type-post","status-publish","format-standard","has-post-thumbnail","category-canada","tag-canada","tag-canadian-vehicles","tag-david-shepardson","tag-import-tariffs","tag-president-donald-trump","tag-regional-content","tag-trade-negotiators"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/posts\/172021","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/comments?post=172021"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/posts\/172021\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/media\/172022"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/media?parent=172021"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/categories?post=172021"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/tags?post=172021"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}