The Financial Post reports in its Friday edition that despite campaign promises by Prime Minister Mark Carney that Canada can dodge U.S. tariffs with an "all in Canada" auto sector, a new C.D. Howe Institute report says the only realistic future for Canadian carmaking is to make nice with the Americans. The Post's Tristin Hopper quotes the report written by Stephen Beatty, the former corporate secretary of Toyota Canada, saying: "To maintain our manufacturing base, Canada must either exponentially expand its share of the domestic market or achieve healthy sales across the larger North American market. That leads to the inevitable conclusion that Canada must cut a new deal with Washington." The highly integrated North American auto sector has been hit by a wave of import tariffs. As the Liberal Party describes it, "Canadian steel" would be assembled by "Canadian workers" into cars to be bought by Canadians. The problem is that Canadian carmaking has become so specialized under free trade that much of the sector would cease to exist if it is not able to work in tandem with carmakers in Mexico and the United States. Currently, just 9 per cent of new cars purchased by Canadians are assembled in a Canadian factory.