June 5, 2026 | Bonus Episode: USMCA’s hidden players: China, the Gordie Howe Bridge and where tariffs land
About this episode
Gordie Howe Bridge opening gets framed as potential USMCA leverage—officially not part of the talks, but permission could be withheld if terms aren’t met. The discussion widens to “silent partners” like China and how tariff uncertainty could reshape North American auto supply chains, including how credits and rules of origin change effective tariff rates. Labor-cost differences and Canada’s role in critical minerals and tooling capacity come into focus, alongside a quick look at EV pickup demand versus hybrids as gas prices move.
The USMCA renegotiation has some players that aren’t at the table and a bridge that isn’t open yet. A panel of North American auto industry experts digs into how Chinese parts in the supply chain could reshape the new deal, whether the Gordie Howe Bridge is being used as a bargaining chip and where automotive tariffs realistically land if zero-tariff trade doesn’t survive the review.
Dave Patterson
"representative in Washington, Dave Patterson, who used to work for General Motors Canada, has said, [472.9s] we're going to have to live with the fact that there's going to be tariffs on auto."
Dave Patterson is the person Ontario sends to handle trade discussions with the U.S. The episode also says he used to work for General Motors in Canada, so he’s speaking from experience.
Dave Patterson is described as Ontario’s trade representative in Washington. The host notes he previously worked for General Motors Canada, which is why his comments on auto tariffs carry industry context.
General Motors Canada
"Dave Patterson, who used to work for General Motors Canada, has said, [472.9s] we're going to have to live with the fact that there's going to be tariffs on auto."
General Motors Canada is GM’s Canadian organization. Here it’s mentioned mainly to explain why Dave Patterson knows the auto industry.
General Motors Canada is the Canadian arm of the General Motors brand. In this segment, it’s used to establish Dave Patterson’s background before he comments on auto tariffs.
tariffs
"we're going to have to live with the fact that there's going to be tariffs on auto. [476.6s] Where do you see those tariffs landing if that's the case?"
Tariffs are taxes a country adds to imported products. If cars or parts get taxed when they cross the border, it can make them more expensive and push companies to build somewhere else.
Tariffs are taxes the U.S. (or another country) charges on imported goods. In this episode, they’re discussed specifically as a cost that could change where automakers choose to build vehicles and how competitive different regions are.
effective rate
"The flat rate for Canada, Mexico is 25%, but you get a credit. So if it's [518.7s] a 50% US content, then the effective rate is 12%."
Effective rate is the real tariff rate after credits or adjustments are applied, rather than the headline percentage. The segment gives an example: with a 25% flat tariff but a credit tied to U.S. content, a “50% US content” scenario yields an effective rate of 12%.
US content
"The flat rate for Canada, Mexico is 25%, but you get a credit. So if it's [518.7s] a 50% US content, then the effective rate is 12%."
“US content” means how much of a car (or its parts) comes from the United States. The episode says that if enough of it is U.S.-made, you may qualify for tariff credits that lower what you pay.
“US content” refers to the share of a vehicle’s value or components that originate in the United States. The segment uses it to illustrate how tariff credits can reduce the effective tariff rate when enough U.S.-sourced content is included.
rules of origin
"On the other hand, if you don't meet the rules of origin, and I don't know what the numbers are, 10%, 12%, 15% of the past, [559.4s] you're paying a 25% tariff, which obviously means it's going to be cheaper to produce those vehicles somewhere else outside the United States."
Rules of origin are the requirements that decide where a product is considered to be made for trade deals. If a car doesn’t qualify under those rules, it may not get the lower tariff rate.
Rules of origin are the criteria that determine whether a product “counts” as originating in a particular country for trade purposes. The segment explains that if vehicles don’t meet these rules, they can lose tariff credits and end up facing the higher tariff rate.
USTR
"you're paying a 25% tariff, which obviously means it's going to be cheaper to produce those vehicles somewhere else outside the United States. So I assume USTR is looking very carefully at these numbers."
USTR is the U.S. government office that handles trade negotiations and trade rules. In this segment, it’s mentioned as the group carefully reviewing how tariffs would work for cars.
USTR stands for the Office of the United States Trade Representative, the U.S. agency that leads trade negotiations and policy. The speaker says USTR is “looking very carefully” at the tariff math, implying the agency is evaluating how the rules and credits affect outcomes for auto trade.
Request an Explanation
Heard something you'd like explained? We'll add it to this episode.
Sign in to request explanations for terms you heard.
Want to learn more?
Browse our glossary for plain-English explanations of automotive terms, jargon, and concepts.
Help improve this episode
See something that's not quite right? Our annotations are AI-generated and can sometimes miss the mark. Click the flag icon on any annotation to suggest a correction.