The Globe and Mail reports in its Tuesday, Aug. 25, edition that shares of Martinrea International, Linamar and Magna International retreated Monday as the industry cautioned that new United States tariffs could disrupt the North American auto sector following the collapse of a trade deal on Friday.
The Globe's Andrew Galbraith writes that while Canada and the United States had widely been expected to reach a trade deal last week, the agreement collapsed shortly before a midnight deadline, after Canada objected to a range of U.S. demands, including some to do with exports of Canadian trucks.
President Donald Trump announced on Monday a 50-per-cent tariff on Canadian auto imports and new tariffs on auto parts starting Jan. 1. This comes in addition to the existing 50-per-cent tariffs on $28-billion worth of Canadian goods that took effect on Saturday, along with ongoing levies on autos, steel, aluminum and forestry.
Flavio Volpe, president of Canada's Automotive Parts Manufacturers' Association, said the new tariffs could disrupt the closely linked Canadian and American auto industries.
He said "Playing a game of chicken with a mirror is a fool's errand. Only China auto wins."
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