According to CoinMeta, and as reported by The Guardian, the Canadian government is considering a car tariff plan that aims to exchange for a reduction in U.S. tariffs on vehicles that meet the standards of the USMCA (USMCA). The plan includes continuing to maintain an exemption policy, which means that the value of U.S.-produced parts in Canadian exported cars is not included in the tariff calculation. Sources revealed that U.S.-Canadian negotiators have discussed this plan. Based on preliminary details, the car tariffs implemented by Trump under Section 232 of the Trade Expansion Act of 1962 could be further reduced from the current 25% imposed on all Canadian car exports that meet the USMCA standards. In addition, the value of U.S. components in Canadian-made cars will still be excluded from the tariff calculation. Approximately 50% of the parts in a Canadian-produced car come from the United States, and businesses believe that a tariff level of 10% to 15% would still be tolerable if U.S. content is not subject to tariffs. Both sides aim to reach an agreement by August 19th. Canadian officials believe that it is more likely that a temporary suspension of the next round of tariffs will be agreed upon before August 19th, rather than a comprehensive resolution to the Section 232 tariff issue.