Trump’s auto parts tariffs are in effect: Why US automakers could feel more pain than Canada

U.S. President Donald Trump’s controversial 25 per cent tariff on auto parts imported into the U.S. from foreign countries came into effect Saturday.

The policy has an exception baked in for Canadian auto parts traded under North American free trade rules, according to new U.S. guidance.

The tariffs have roiled the North American auto industry, with companies and independent analysts warning of higher prices and reduced sales.

But the exemption means Canada’s auto sector could dodge a bullet, while the U.S. auto sector ends up bearing the brunt of the cost. Jeff Semple explains.