Canada has announced a 25% tariff on some vehicles imported from the United States.
Gatekeepers News reports that the announcement was in response to tariffs imposed by US President Donald Trump that took effect on Thursday.
Prime Minister Mark Carney stated that the new measure will apply to all vehicles imported from the US that do not meet CUSMA standards, the Canadian designation for North American free trade agreement.
According to his office, the tariffs that will take effect in the coming days will affect approximately CA$8 billion (US$5.7 billion) worth of US vehicles,
The tariffs will impact cars and light trucks that are made with less than 75% North American parts, roughly 10 per centof all vehicles shipped from the US to Canada, or about 67,000 vehicles annually.
Carney clarified during a press conference that the tariffs will not apply to auto parts and will not affect vehicle imports from Mexico.
He added, “Given the prospective damage to their own people, the American administration should eventually change course. But I don’t want to give false hope.”
Carney said it could take a long time for the United States to shift approach, adding that Canada’s previously announced tariffs will remain in effect.
