Canada hits US autos with 25% tariffs, mirroring Trump’s move
Canada was spared Trump’s ‘reciprocal tariffs’, but new 25 per cent US tariffs on foreign-produced vehicles still took effect on Thursday
Canada will put 25 per cent retaliatory tariffs on US-made vehicles in response to the Trump administration’s import taxes on foreign autos, Prime Minister Mark Carney said Thursday.
The Canadian tariffs will apply to vehicles that are not compliant with the US-Mexico-Canada Agreement, and on the “non-Canadian content” in cars and trucks that are shipped from the US under the rules of that trade deal.
In other words, the Canadian auto taxes largely mirror the structure of the US auto tariffs – but they will not apply to auto parts.
Canada’s auto sector is heavily integrated with the US and stands to take a blow from Trump’s tariffs. Stellantis NV, owner of the Jeep and Chrysler brands, has already announced it will shut down its Windsor, Ontario, assembly plant for two weeks as it sorts through the impact, the company said in a memo to employees.
Hefty US levies also remain on products that do not comply with the US-Mexico-Canada Agreement, as well as steel and aluminium products. Trump has also threatened to add new duties on pharmaceutical drugs, semiconductors, copper and timber.