Hey there, friends! 😊 Have you ever wondered how cars are made and what happens when countries trade car parts? Well, here’s some interesting news!
The United States announced that auto parts from Canada and Mexico, which follow the rules of the Canada-U.S.-Mexico Agreement (that’s CUSMA for short), won’t have to pay extra taxes called tariffs. 🎉
But wait, what’s a tariff? 🤔 It’s like a fee or a tax that countries charge on things they bring in from other places. In this case, President Trump decided to charge a 25% tariff on all cars and car parts coming into the U.S. last month.
However, there’s good news for Canada and Mexico! Since they have a special agreement with the U.S. called CUSMA, their car parts that meet certain rules are exempt, which means they don’t have to pay that extra fee. Isn’t that cool? 🚗✨
But not all parts are exempt. Other parts, and parts from cars built outside the U.S. that don’t meet the CUSMA rules, will still have to pay the 25% tariff starting on May 3rd at 12:01 a.m.
This is important because it affects how much cars might cost and where companies get their parts from. It’s like if your friend gave you stickers for free because of a special deal, but you had to pay for stickers from someone else.
So next time you see a car, you can think about all the different places its parts might come from and how countries work together to make trading fair! 🌟
Reference(s):
Canadian, Mexican auto parts get Trump tariff exemption under CUSMA
cgtn.com
