The incoming Trump administration cleared its intentions on imposing border tax on Canadian-made cars. The executives in the Canadian auto industry were expecting the call to be made sooner or later. The border Tax will mean any company from the US moving to any other country including Canada and Mexico restricting job opportunities for the people in the US will have to pay an additional levy on all its vehicle imports that are to be sold in the United States.
However, the recent announcement by Trump to repeal North American Free Trade Agreement (NAFTA) has distressed the auto industry in North America. Hence, the lime light shifted back to Mr Trump from the flashy North American International Auto Show held annually in Detroit, where carmakers showcase their latest offerings.
Till now, Trumps relentlessly criticized carmakers who build their manufacturing units outside the country, especially in Mexico. However, Judging by the recent actions of the Trump Cabinet, it seems as the auto industry in Canada is not escaping the spot. On the other hand, the Canadian Foreign Affairs Ministry is preparing to go into talks with the incoming Trump admiration on the particular issue as it notes that there is a strong opposition to a border tax implementation within the United Sates.
The officials for the Canadian Foreign Affairs Ministry are looking forward to a construction of a healthy relationship with the Trump transition team and have already initiated talks with the team. The idea of a border tax has been discussed for quite some time now, however, is facing a lot of objection by various American lawmakers. Meanwhile, officials from the ministry are committed to working with the new administration in the greater interest of the both the countries.
Nearly five automobile manufacturer operating in Canada exported around $ 60-billion worth of cars, minivans, and crossovers to the US in 2016. The incoming administration signaled carmaker about the consequences of moving outside the country, thus, car companies have become more careful in making a decision related to expansions.