Canada has imposed retaliatory 25 per cent duties on cars from the US
Canadian Prime Minister Mark Carney announced on Thursday, 3 April, countermeasures in response to United States duties. The head of the government noted that "every dollar received from these duties will go directly to support workers in the automotive industry".
Here's What We Know
The Canadian government has called the duties on cars from the United States "countermeasures to protect Canadian workers and businesses, as well as Canada's economy." These countermeasures include:
- 25% duties on fully assembled vehicles that do not meet CUSMA (Canada-U.S.-Mexico Free Trade Agreement) requirements imported into Canada from the United States.
- 25 per cent duties on non-Canadian and non-Mexican components in fully assembled CUSMA-compliant vehicles imported into Canada from the United States.
It is also announced that Canada intends to develop a mechanism to incentivise domestic auto manufacturing and attract new investment in the industry.
US duties
On 3 April, 25 per cent duties on Canadian-made cars came into effect at the initiative of US President Donald Trump. These duties complemented the 25 per cent duties on Canadian steel and aluminium products introduced in March.
In addition, the US plans to impose 25 per cent duties on certain components for Canadian-made cars by May 3.
Source: PM
