Canada slaps 25 % tariffs on US cars as counter measures

Canada slaps 25 % tariffs on US cars as counter measures

WASHINGTON: Following US President Donald Trump’s announcement of reciprocal tariffs, Canadian Prime Minister Mark Carney stated that Canada will impose a 25% tariff on US cars and all other vehicle imports that don’t comply with the free trade agreement.

Carney added that the revenue generated from these tariffs will support Canada’s auto workers and the industry. He shared this on X on Thursday, saying, “In response to President Trump’s tariffs, Canada will impose a 25% tariff on all US vehicle imports that don’t meet our free trade agreement. All revenues will go to support Canadian auto workers and their industry.”

Carney also said that for US vehicles meeting the Canada-United States-Mexico Agreement (CUSMA), Canada will impose a 25% tariff on non-Canadian or non-Mexican content. The revenue from these tariffs will also support the auto sector.

He emphasized that Canada’s tariffs will differ from the US tariffs and will not affect auto parts. “Our tariffs, unlike President Trump’s, will not affect auto parts because we value our supply chain,” Carney wrote. He also mentioned that Canada will create a support framework for auto producers to encourage production and investment in the country.

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