The Financial Post reports in its Wednesday edition that the Canadian Automobile Dealers Association has issued a five-point plan to keep auto prices manageable as a trade war with the United States drags on, including policies that could reverse some of the auto sector integration that has characterized the past half-century.
The Post's Gabriel Friedman
writes that CADA head Tim Reuss says: "The Canadian auto sector is in turmoil as a result of the tariffs. While we applaud the current Canadian government on its measured response to not make the situation worse, it is clear we are fast approaching a consumer affordability crisis."
The situation shows that U.S. tariffs on steel, aluminum, vehicles and potentially vehicle parts next month are already affecting the integration of the North American auto sector. One part of CADA's plan calls for an expansion of Canada's regulatory framework to allow vehicles that meet safety standards in the European Union, Japan and Korea to be imported. Under the current system, Canada relies on U.S.-defined environmental and safety standards for vehicles sold here. Economists say the Canadian market by itself is not large enough to justify its own manufacturing standards.
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