The True Post (Web News)Canadian auto parts traded under North American free trade rules will be exempt from U.S. President Donald Trump’s 25 percent auto tariff, which will begin Saturday.
Auto parts that qualify for preferential treatment on free trade under the Canada-United States-Mexico Agreement (CUSMA) will be subject to a zero percent tariff, according to new U.S. guidance, a U.S. Customs and Border Protection bulletin issued to U.S. importers on Thursday.
Except for automobile knockdown kits or assemblies of parts. All other parts, including non-U.S. parts for passenger vehicles completed outside the United States, will still be subject to a 25 percent tariff that will take effect at 12:01 a.m. Eastern Time on May 3.
All CUSMA-compliant goods were already exempt from Trump’s sweeping tariffs imposed in March over fentanyl concerns. Canada’s Trade Commissioner Service on Wednesday released new guidance and information for Canadian exporters to understand Kuzma compliance, as well as resources for resolving tariff-related issues.
