Ultimate twist in the incessant Roman-Savon of the Trump administration, it would seem that manufacturers of Canadian car parts will be able to blow a little since according to a customs of the United States they will escape the incoming rates in force on May 3.
On March 26, the President of the United States Donald Trump announced the taxation of 25% prices on all imports in the automotive sector.
Suddenly, he said that the prices would come into force on April 2, but that they would not be collected until May 3.
The announcement had created a shock wave in Canada. Especially since it came against the Canada-State-Mexico (ACEUM) agreement, which notably governs the automotive industry between the three countries.
Under these agreements, the parts and vehicles produced in one of these countries were exempt from customs duties.
Long -standing
The ACEUM followed the Alena created in 1994 which led the industries of the three countries to be adorned to the point where pieces could cross borders to more than one recovery.
Canada then retaliated with the decision of March 26 by announcing reciprocal prices.
ACEUM was signed in 2018, during Donald Trump’s first term. It was under his presidency that he entered into force in July 2020. The agreement must be revised in 2026.
In silence
But here is that on Thursday, the Customs and Border Protection Agency of the United States (US Customs and Border Protection (CBP)) issued a bulletin which “intends to provide orientations concerning 25 % customs duties on imports of certain automobile parts from all countries”.
This notice which is addressed “to importers, brokers and declarants” mentions that a “rate of 0%” applies to automobile parts “eligible for special tariff treatment under the United States-Mexico-Canada agreement (ACUEM).”
Already on Tuesday, the Trump administration had announced that car manufacturers would be exempt from a body of prices. Only the highest would apply.
Before this decree a Canadian vehicle, for example, could be affected because it manufactured outside the United States, by aluminum and steel prices in addition to that on the parts.
Note that the White House has still not made a declaration about the CB bulletin
This is at least what is indicated on Thursday.
– With the QMI agency
