The deal Canada is negotiating with the South American trade bloc, where currently machinery and equipment are hit with tariffs of up to 20 per cent, could help take the sting out of the U.S. trade war, said Kip Eideberg of the Association of Equipment Manufacturers. (The Logic)

Talking point: The senior vice-president of the industry association said a deal could ease one of the “pain points” for Canadian equipment firms hoping to export to Mercosur member Brazil, which is the requirement “to have a domestic footprint as a precondition for selling into the Brazilian market.” Many Canadian manufacturers have been hit hard by President Donald Trump’s 50 per cent tariffs on steel and aluminum, which now apply to the full customs value of goods with those metals. Eideberg said opening up new markets could “hopefully make up for some of the headwinds that we’re facing trying to sell to the United States.”