On Tuesday, Canada joined a meeting organized by Japan and the European Union in Geneva, Switzerland to decide how to challenge the possible imposition of tariffs on cars and parts imported into the United States.

The meeting involved vice-ministers of these countries and representatives of Mexico and South Korea to exchange views in search of a strategy and response to potential U.S. action.

The U.S. is considering the imposition of tariffs of up to 25% on the automotive sector after imposing tariffs on aluminum and steel from various foreign countries.

Last Monday, President Trump said Washington could introduce tariffs on imported cars from EU countries, but both sides agreed to concessions to avoid a trade war.

Given the possible imposition of tariff rates under Section 232 of the Trade Expansion Act (which allows tariff increases if imported goods represent a threat to national security), critics from the automotive sector assert that the passage will damage the global automotive industry because of the rise in vehicle prices and unemployment.

To read more about the possible imposition of auto tariffs, visit The Globe and Mail and CNBC.