If U.S. President Donald Trump is determined to impose auto tariffs on Canada, it may be impossible to stop him, according to a former U.S. Ambassador to Canada.
“We’ve heard from the automobile manufacturers, we’ve heard from the AFL-CIO, we’ve heard from the U.S. Chamber [of Commerce], we’ve heard from members of Congress: They do not want to see auto tariffs go in,” Bruce Heyman told BNN Bloomberg in an interview on Tuesday, “but I don’t know how much they can control what’s happening at the White House.”
Heyman added that potential auto tariffs would hurt on both sides of the border.
“I think the auto tariffs, though, would be incredibly painful economically to Canada. But, make no mistake about it: It would be painful to the U.S., as well.”
Heyman said Trump’s language – including stating that Canada is taking advantage of the U.S. and that tariffs are needed on a national security basis – indicates that he may be serious about invoking auto tariffs, even if he may lack the authority to do so.
“I don’t believe he has the legal authority to do [it], but that doesn’t mean he won’t do it - because of national security,” Heyman said of Section 232 of the Trade Expansion Act, which Trump has already used to justify steel and aluminum tariffs on Canada and other countries.
Trump is using the threat of tariffs as leverage in the ongoing North American Free Trade Agreement negotiations, according to Heyman.
“We all know that he’s saying ‘give me milk or I’ll tax your cars and I don’t care. The language he’s used has thrown that out the window, but his actions … he may move forward on that.”
But Heyman adds that Canada needs to get these tariffs dealt with as part of any NAFTA pact, for fear of them being used as a leverage point further down the line.
“You need these agreements ratified because I think the trust value is breaking down, especially when he claims there [are] national security issues when everybody is like: ‘Seriously? Canada? National security?’” he said. “We all know that’s not right.”
Heyman wouldn’t speculate on when or if a deal could get done, but says Canada needs to find middle ground with the U.S. for the sake of the future relationship between the two countries.
“We’ve had so many deadlines that seem to be: “This is it. This is the deadline,” and it keeps moving,” he said. “But the pressure-cooker is really going right now.”
“All of this is a high-risk moment between the U.S. and Canada, not only in our trade but in our relationship more broadly,” he said. “I’m hopeful that we find a path to compromise.”
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