Won’t happen. EU sees over 10% as a red line.
Even 10% is a big win for Trump.
But he can’t seem to help himself. He keeps trying to extract more which makes the other side dig in further.
Terrible negotiating strategy. It simply doesnt work at the global level.
Terrible trade deal for Japan. A 15% US tariff will greatly hurt their car exports to the US. I don’t understand why Japanese car stocks have surged unless they assume production will move to the US.
Canada trade with US would be devastated by 15% tariffs so I can’t see a deal if that is the US position.
They already have significant production in the US: Columbus Biz Insider: "Biggest Japanese auto plants in the U.S." - JAMA
There is also a joint Toyota-Mazda plant in Huntsville AL.
It’s at least better than the 27.5% tariff that was in place, and most of the major Japanese auto manufacturers already have plants in the US. They were already rejiggering their operations to address tariff impacts (e.g. Subaru was retooling to produce more American-market cars in the US, with a side-impact of Canadian market Suabrus now coming mostly from Japan, rather than some coming from US factories).
I think it eliminated the need for U.S. parts. U.S. car manufacturers didn’t seem happy.
How much had they dropped due to the TACO Era of the last 6 months?
Of course it looks better than the threatened tariffs. But it is much worse than the tariff situation they had before Trump went on his tariff spree.
For a lot of reasons.
Japanese car manufacturers have larger operations in Canada than the three big US companies do. Those Canadian operations are at risk of shutting down if US-Canada tariffs stay high.
There is also the fact that the automakers in general are not as vertically integrated as they once were (Tesla tries to be highly vertically integrated). Companies they depend on for parts make a fair amount of tariff exposure. I’m sure someone can dig up some analysis of internal parts/ labor/external parts split for the major companies.
Amazed that the UK and India have reached a trade deal. Shows what can be done when there is mutual trust and respect.
I wonder if it’s just a coincidence that this is happening just as India and England are in the middle of playing a closely fought test cricket series.
Well Canada and the US did not make any trade progress during the US-Canada hockey clash earlier this year!
Both Trump and Carney are negative on a Canada-US trade deal being implemented. I am ok with that as it will hasten Canada’s decoupling from the US.
You can go your own way.
Totally illogical for Canada to divorce itself from the US but I appreciate there may be no option because off US actions.
Is this framework for a deal like a concept of a plan?
We’ll find out in about two weeks.
