Canada election: Carney says ‘nothing is off the desk’ to battle Trump’s tariffs

Amid looming auto tariffs, some hope emerges for an Ontario exemption

Alex Panetta right here, CBC’s Washington correspondent.

There was an uncommon murmur on the battlefield immediately, amid probably the most severe Canada-U.S. commerce battle in generations: the sound of optimism.

Ontario Premier Doug Ford advised reporters in Toronto that he hoped for an exemption for vehicles with a major proportion of U.S.-made components, based mostly on his conversations with Trump’s staff.

One official aware about current Canada-U.S. discussions stated the edges have been speaking for days a few potential reprieve — which is why, he stated, Canadian officers have been so crestfallen Wednesday once they heard Trump make his announcement within the Oval Workplace.

Then they noticed the high quality print of the manager order: It stated vehicles constructed beneath guidelines of the Canada-U.S.-Mexico commerce pact may have their U.S. content material exempted from tariffs.

This implies, for instance, {that a} automobile assembled in Canada may, in concept, see its 25 per cent tariff diminished to 12.5 per cent, if half the automobile’s components are American.

That will be a painful, however not essentially deadly blow to auto manufacturing in Canada, particularly with a weak loonie.