Canada Hits Back With 25% Tariffs On US Auto Imports
In a sharp response to US President Donald Trump’s newly imposed ‘reciprocal’ tariffs, Canada on Thursday announced that it would impose a 25% tariff on some US auto imports. Prime Minister Mark Carney confirmed that 25 per cent tariffs will be levied on all vehicles imported from the United States that are not compliant with CUSMA.
CUSMA is the acronym for the Canada-United States-Mexico Agreement, an existing North American free trade agreement. The move is a direct retaliation to Donald Trump’s levies, indicating escalating trade tensions between the two nations. Carney described Canada’s retaliation as “focused and calibrated,” aiming to minimise disruptions. The Canadian leader, however, did not immediately offer details on how many vehicles could be impacted by Ottawa’s tariffs.
The Canadian tariff comes days after the United States, under the leadership of Donald Trump, announced a 25 per cent tariff on overseas auto imports, saying it would boost domestic manufacturing and generate $100 billion annually. While announcing the duties, Trump said he expected the move to drive factory openings in the United States and eliminate what he calls a “ridiculous” supply chain spanning the United States, Canada, and Mexico.
Trump has consistently maintained that auto import tariffs are a key policy of his presidency, expecting the added costs to push more production to the United States and reduce the budget deficit. US President Donald Trump announced reciprocal tariffs against other countries on Wednesday during an event at the Rose Garden of the White House. The tariffs ranged from 10 per cent to 49 per cent. The US President levied a 26 per cent tariff on India, 34 per cent on China, 46 per cent on Vietnam, 10 per cent on the UK, 49 per cent on Cambodia and 25 per cent on South Korea.
