A quick response from Canada to the new tariffs on Canadian-made vehicles by U.S. President Donald Trump.
Prime Minister Mark Carney says a matching 25% tariff will be applied on vehicles made in the U.S. and sold in Canada.
Carney says it will be applied to all vehicles that are not compliant with the Canada-United States-Mexico Free Trade Agreement (CUSMA) and non-Canadian content-compliant vehicles under CUSMA from the United States.
“Our tariffs, though, unlike the US Tariffs, will not affect auto parts because we know the benefits of our integrated production system, and they will also not affect vehicle content from Mexico, who is respecting the CUSMA agreement,” says Carney.
Carney says he warned President Trump last week about reciprocal tariffs if the U.S. moved ahead with its tariff threat.
The impact of the U.S. tariffs on Canada’s auto industry is already being felt.
An assembly plant in Windsor is shutting down for at least the next two weeks, impacting 3,600 workers.
Carney says a framework agreement for auto producers in Canada is being established that allows them and their workers relief from the tariffs as long as they maintain production facilities in the country.
“Every single dollar raised from our counter-tariffs, which could reach around $8 billion before remission, will go directly to our autoworkers and the companies affected,” says Carney.
Last month, the U.S. imposed tariffs on steel and aluminum imports from around the world, including from Canada.
Carney says Canada has taken steps to fight the tariffs, filing disputes with the World Trade Organization that the U.S. tariffs violate CUSMA.
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