U.S.-Canada tariff fight raises new concerns for North American dealers Canada says protecting its auto assembly and parts manufacturing industry — and the jobs tied to it — is a nonnegotiable condition of any future U.S. trade agreement as tariff tensions escalate. – Canada says vehicle assembly and parts manufacturing must remain protected in any trade deal. – Tariff treatment for medium- and heavy-duty vehicles remains a major sticking point in negotiations. – General Motors and Ford both operate production facilities in Canada that could be affected by the dispute. – The U.S. has ordered 50% tariffs on roughly $20 billion in Canadian goods following the collapse of talks. – Canada plans to impose its own $20 billion package of retaliatory tariffs beginning Sept. 8. – Prolonged uncertainty could affect vehicle pricing, inventory planning and the cost of imported components. For U.S. dealers, the dispute highlights just how interconnected North American automotive manufacturing has become — and how changes in cross-border trade rules can ultimately impact sourcing, inventory and the price of vehicles.