Canada’s Prime Minister Mark Carney announced on Thursday that Canada will match the U.S. 25% tariff on vehicles that are not compliant with the North American free trade deal (CUSMA).
The American 25% tariffs on all foreign-made automobiles took effect as of midnight Wednesday, even though the U.S. administration has yet to “establish a process” to tax exclusively the non-American vehicle components of CUSMA-compliant products.
On Thursday, Carney announced Canada will respond with 25% tariffs on all non-CUSMA-compliant vehicles imported from the U.S., and all non-Canadian content of CUSMA-compliant vehicles from the United States.
Carney said Canada’s levies will not apply to auto parts, nor will they apply to vehicles from Mexico. The federal government is also working with car manufacturers to develop a framework to avoid the tariffs under certain conditions.
Final details should soon be published by the Canadian Government.
