The Wall Street Journal reports Trump Threatens Tariffs on Canadian-Made Cars.

U.S. officials met Mexican counterparts in Washington [on Friday] to resolve disagreements between the two countries on Nafta. The Trump administration has sought to portray Canada as dragging its feet in talks, part of what observers say is an effort to put pressure on Ottawa to make trade concessions.

While he praised Mexico’s president-elect, Andrés Manuel López Obrador, in Friday’s tweet, Mr. Trump went on to criticize Canada, saying its “Tariffs and Trade Barriers are far too high” and “Will tax cars if we can’t make a deal!”

Applying special tariffs to cars made in Canada would end decades of preferential treatment between the two neighbors through deals that predated Nafta. Detroit is heavily reliant on parts made nearby in Ontario, and Canadian cars trade duty free under Nafta if they meet certain rules that the U.S. wants to toughen.

Mr. Trump had most frequently threatened to apply tariffs to European or German cars, but last month he announced a trade truce with the European Union, part of an effort to negotiate a deal that lowers trade barriers between the U.S. and Europe.


Any effort to dislodge Canada from a final Nafta deal or impose special tariffs on Canadian cars would see opposition from the American auto industry, consumers and many U.S. lawmakers.

Most Likely Outcome

Given the widespread opposition by US Senators and the auto industry itself the most likely outcome is that Canada will offer Trump some meaningless concession after which Trump will brag about how great a job he is doing.

This is precisely what happened as he backed off his threat to put tariffs on German cars.

For details, please see Trump's Lies Won't Make Farmers Great Again: There Was No Deal on Agriculture. Also consider my follow-up Hey Mr. Juncker, About That Bean Order?

Mike "Mish" Shedlock

Trump Announces Deal with Mexico, "We’ll See" About Canada

"Big deal looking good," says trump as he drops the name NAFTA due to "bad connotations".

Hello Recession: Trump Imposes Tariffs on Mexico Over Immigration

Trump Says "STOP". Will Mexico listen? Can Mexico Listen?

NAFTA is Dead: Trump Seeks Separate Agreements With Mexico and Canada

Trump proposes NAFTA by another name. But it won't look like NAFTA. He wants tailored bilateral trade agreements.

Companies Ponder Moving to Mexico to Escape Trump Tariffs

Electronics, furniture, and specialty steel companies are hit hard by Trump Tariffs. Some ponder moving operations.

Trade Deficit Widens Despite Tariffs: Record Deficits With China, Mexico

Today's trade report will set off hows from trump. Imports up, exports down. Record deficits with China and Mexico.

Lumber Trade Idiocy: Trump Hits Canada with Proposed 20% Tariff on Lumber

After bitching about the unfair trade policies of China, Mexico, Germany, and Japan for years, Trump finally decided to act. His first target is Canada.

Trump Again Threatens Europe With Tariffs: Expect Instant Global Recession

Trump is hopping mad the EU for at least seven reasons. Mad enough to foolishly smack them with tariffs? I Believe so.

Art of Changing the Deal: Trump Demands Canada Treat US Farmers Better

Trump made demands on Mexico and Canada regarding NAFTA talks. Canada complains Trump is changing the discussion.

Import Shuffle: Canada, Mexico Surpass China as the US' Biggest Trading Partner

For the first time in a decade, Canada and Mexico surpassed China as the US' largest trading partner.