Canada Imposes 25% Tariff on Certain U.S. Automotive Imports
New tariffs target vehicles not meeting North American trade agreement standards, affecting approximately 67,000 vehicles per year.
The Canadian government has announced a 25% tariff on certain American automotive imports that do not comply with the United States-Mexico-Canada Agreement (USMCA).
This measure, expected to take effect in the coming days, will impact vehicles imported from the United States valued at approximately CAD 8 billion (USD 5.7 billion).
The new tariffs specifically apply to cars and trucks manufactured with less than 75% North American parts, which accounts for around 10% of all vehicles shipped from the U.S. to Canada, translating to approximately 67,000 vehicles annually.
This move arrives in the wake of additional tariffs announced by U.S. President Donald Trump on imports from a range of countries, which now face a minimum duty of 10% on all sales to the United States.
Canada, a key trading partner of the United States, has already been subjected to additional U.S. tariffs on steel and aluminum.
Following the announcement of the new tariffs, Stellantis, one of the world’s major automotive manufacturers, declared a two-week production suspension at its Canadian factory in Windsor.
Mark Carney, a senior Canadian official, remarked that the trade war initiated by the U.S. president could lead to significant disruptions in the global economy.
He noted the dissolution of a system built on U.S. leadership in global commerce that Canada has relied on since World War II. Canadian Prime Minister reiterated that the era of U.S. diplomacy marked by trust and mutual respect, and championing free trade, has come to an end.
In retaliation, Canada has already imposed tariffs on American consumer goods worth CAD 30 billion and additional tariffs on U.S. steel and aluminum imports valued at CAD 30 billion.
Carney and President Trump have agreed to discuss the future of bilateral trade after the Canadian federal elections on April 28.
Currently, products from Canada and Mexico that comply with the USMCA are not subject to these new tariffs, while non-compliant products face tariffs up to 25% since March.
This measure, expected to take effect in the coming days, will impact vehicles imported from the United States valued at approximately CAD 8 billion (USD 5.7 billion).
The new tariffs specifically apply to cars and trucks manufactured with less than 75% North American parts, which accounts for around 10% of all vehicles shipped from the U.S. to Canada, translating to approximately 67,000 vehicles annually.
This move arrives in the wake of additional tariffs announced by U.S. President Donald Trump on imports from a range of countries, which now face a minimum duty of 10% on all sales to the United States.
Canada, a key trading partner of the United States, has already been subjected to additional U.S. tariffs on steel and aluminum.
Following the announcement of the new tariffs, Stellantis, one of the world’s major automotive manufacturers, declared a two-week production suspension at its Canadian factory in Windsor.
Mark Carney, a senior Canadian official, remarked that the trade war initiated by the U.S. president could lead to significant disruptions in the global economy.
He noted the dissolution of a system built on U.S. leadership in global commerce that Canada has relied on since World War II. Canadian Prime Minister reiterated that the era of U.S. diplomacy marked by trust and mutual respect, and championing free trade, has come to an end.
In retaliation, Canada has already imposed tariffs on American consumer goods worth CAD 30 billion and additional tariffs on U.S. steel and aluminum imports valued at CAD 30 billion.
Carney and President Trump have agreed to discuss the future of bilateral trade after the Canadian federal elections on April 28.
Currently, products from Canada and Mexico that comply with the USMCA are not subject to these new tariffs, while non-compliant products face tariffs up to 25% since March.
