Any Canada-U.S. trade deal must include auto sector: Brampton mayor
The U.S. has previously said the proposed tariffs are in response to retaliatory measures and warned they must be lifted before a deal will be reached.
Brampton Mayor Patrick Brown has emphasized that any future trade deal between Canada and the United States must include the auto sector. Brown stated, "no deal is better than a bad deal" if the auto sector isn’t included in the negotiations. This sentiment echoes a common theme in the past year regarding Canada's ongoing trade talks with the U.S. Brown expressed hope that if they attain a trade agreement with the United States, auto trade would be included in "free trade."
However, Unifor President Lana Payne stated that Stellantis is strongly considering closing an assembly plant in Brampton and moving Jeep Compass production to the U.S. The plant’s future production is currently at an indefinite standstill. Payne added that Stellantis has committed to Brampton and its workers, and negotiations are ongoing to find a sustainable manufacturing solution for Brampton Assembly.
Current negotiations between Canada and the U.S. are progressing constructively, but sources claim there is still significant work to be done, especially with tariffs set to come into place on Aug. 19. Even if a deal is reached, a reduction in tariffs on Canadian autos and parts under the Canada-U.S.-Mexico Agreement (CUSMA) is expected, with some sources suggesting a rate between 10-15 per cent.
Auto industry insiders have expressed major concerns over the tariffs, stating they would not support any tariff level on CUSMA-compliant parts and autos.
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