Canada has introduced a 25% tariff on select vehicle imports from the United States, escalating trade tensions following similar measures enacted by Washington earlier this month.
The countermeasure applies to fully assembled vehicles that fail to meet the criteria set under the Canada-United States-Mexico Agreement (USMCA), as well as to non-Canadian and non-Mexican components used in compliant vehicles.
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Unlike the U.S. tariffs, which broadly apply to all foreign-made vehicles not assembled domestically, Canada’s levies specifically target imports from the United States. Vehicles from Mexico remain unaffected, as the country continues to adhere to USMCA provisions. The Canadian tariffs cover passenger vehicles and commercial vehicles used for transporting goods.
“Canada continues to respond forcefully to all unwarranted and unreasonable tariffs imposed by the U.S. on Canadian products,” said Finance Minister François-Philippe Champagne. “The government is firmly committed to getting these U.S. tariffs removed as soon as possible, and will protect Canada’s workers, businesses, economy and industry.”
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The Canadian government emphasized that these tariffs are retaliatory in nature and will remain in effect until the United States rolls back its recent import duties. In response to the U.S. tariffs, several automakers have already adjusted operations.
Stellantis temporarily closed a Canadian plant, while Volkswagen suspended vehicle shipments from Mexico to the U.S. The U.S. measures also include pending levies on car parts, expected to take effect next month.
Source: international.gc.ca, canada.ca