Canada warned at a hearing in Washington that should the United States impose a 25 percent tariff on imported autos, it will strike back.
The U.S. Commerce Department is investigating whether the tariffs are necessary based on the theory that the imports pose a national security risk.
But for several hours, one after another, U.S. industry leaders and vehicle manufacturers said such a move would cause serious economic damage and begged the Trump administration to discard the tariff idea.
Numerous experts have warned that the auto and auto parts industries are so integrated in Canada and the U.S. that tariffs would result in driving up the cost of vehicles, thereby lowering demand among consumers and lead to large layoffs in both countries.
Canada’s envoy to Washington, Kirsten Hillman, testified that the proposal is a bad one for all concerned.—APP