U.S. Customs and Border Protection said it will not apply new 25 per cent tariffs on major auto parts, which come into force on May 3 at 12:01 a.m. EDT, if the parts qualify for the U.S.-Mexico-Canada trade agreement. (The Logic)

Talking point: The guidance addresses a major fear for Canadian manufacturers, who were worried that auto parts shipped across the U.S. border multiple times would be tariffed again and again. Flavio Volpe, head of Canada’s Automotive Parts Manufacturers’ Association, called it a breakthrough. Rob Wildeboer, executive chairman Canadian auto-parts maker Martinrea, said in an earnings call that the announcement was “the result we were looking for,” but noted that there are still tariffs applied to non-U.S. content of cars assembled in Canada or Mexico, which “doesn’t make much sense.” The order “gives a lot more certainty” for auto-parts maker Magna International, CEO Swamy Kotagiri said in an earnings call. But the firm still has to look at every shipment in “intricate detail,” he said.