Commerce Secretary Howard Lutnick declared that Canada should “come second” to the U.S. auto industry, and indicated the U.S. is determined to dominate auto manufacturing but will be amenable to continue importing parts from its northern neighbor.
In this edition of Tariffs Insights, Thomas Thompson considers the improved optics and tone regarding the relationship between Canada and its prime minister, Mark Carney, and U.S. President Donald Trump. However, he concludes little real progress has been made towards reaching a comprehensive trade deal or agreeing to meaningful tariff concessions between the two countries. Meanwhile, U.S, steel tariffs imposed in March have resulted in near zero growth for the Canadian economy, as well as that nation’s highest unemployment in nearly a decade. Still, Prime Minister Carney remains hopeful of making progress on the tariff front as he dangled new Canadian private investments in front of the president.
