The Globe and Mail reports Canada is weighing a deal to accept part of U.S. auto tariffs in return for lower duties on vehicles meeting USMCA rules. Under a proposal discussed by negotiators, the value of U.S.-made parts in Canadian-built cars would be excluded from the tariff base, preserving an existing exemption, while Section 232 tariffs imposed by the Trump administration — currently 25% on USMCA-eligible Canadian exports — could be reduced. Canadian cars contain roughly 50% U.S. content; a

The Globe and Mail reports Canada is weighing a deal to accept part of U.S. auto tariffs in return for lower duties on vehicles meeting USMCA rules. Under a proposal discussed by negotiators, the value of U.S.-made parts in Canadian-built cars would be excluded from the tariff base, preserving an existing exemption, while Section 232 tariffs imposed by the Trump administration — currently 25% on USMCA-eligible Canadian exports — could be reduced. Canadian cars contain roughly 50% U.S. content; automakers say excluding U.S. content could make a 10–15% tariff tolerable. Talks aim for an agreement by Aug. 19, though Canadian officials expect a temporary pause of the next tariff round is more likely than a full resolution before that date.