U.S. scraps planned 25% tariff on Canadian automobile parts [Video]

U.S. Customs and Border Protection guidance released on Thursday said automobile parts compliant with the Canada-U.S.-Mexico Agreement on trade will not be hit with President Donald Trump’s tariffs.

It’s the latest sign of relief for the deeply integrated North American automobile industry besieged by multiple levels of tariffs.

Trump slapped a 25 per cent tariff on all vehicle imports to the United States last month, but made a carveout for the American-made parts of cars compliant with the continental trade pact, also called CUSMA.

The White House originally said they were looking to develop a similar scheme for auto part imports compliant with CUSMA before those duties were set to go in place on May 3.

Industry and experts said it would …