Report Calls for ‘Auto Pact’ Tying Duty-Free Vehicle Imports to Canadian Production

Report Calls for ‘Auto Pact’ Tying Duty-Free Vehicle Imports to Canadian Production
Honda employees work along the vehicle assembly line before an event announcing plans for a Honda electric vehicle battery plant in Alliston, Ont., on April 25, 2024. The Canadian Press/Nathan Denette
The Canadian Press
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A new report suggests that if Canada can’t convince President Donald Trump to drop all auto tariffs, it should negotiate a new auto trade agreement with the U.S. and Mexico that would impose permanent import tariffs but grant automakers a break if they meet minimum local production requirements.

The strategy outlined in the report, released Thursday by the C.D. Howe Institute, draws inspiration from the 1965 Canada-U.S. Auto Pact.