TMTPOST -- Canada announced on Tuesday it would start levy tariffs on certain U.S. cars in retaliation for the Trump administration’s sweeping auto tariffs.
Credit：China Central Television
Canada’s new countermeasures announced last week in response to the unjustified tariffs imposed by the United States on the Canadian auto industry will come into force at 12:01 a.m. Eastern Time on April 9, Wednesday, the Minister of Finance François-Philippe Champagne confirmed in a statement released on Tuesday.
The upcoming tariffs include 25% tariffs on non- United States-Mexico-Canada Agreement (USMCA) compliant fully assembled vehicles imported into Canada from the United States, according to the statement. Those non-Canadian and non-Mexican content of USMCA compliant fully assembled vehicles imported from the U.S. will also face 25% tariffs imposed by the Canadian government. USMCA is a trade agreement that Trump's first administration negotiated to replace the decades-old North American Free Trade Agreement.
Champagne also announced that the government has granted a special exemption from previous tariff countermeasures on U.S. consumer and household products to the residents of Campobello Island, New Brunswick. This special exemption is in recognition of the island’s unique situation, which is only accessible by road via the United States year-round.
Champagne vowed to continue the forceful countermeasures against the U.S. tariffs. “Canada continues to respond forcefully to all unwarranted and unreasonable tariffs imposed by the U.S. on Canadian products. 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,”said the minister.
Canadian Prime Minister Mark Carney preview the country will respond to U.S. President Donald Trump with new auto levies on April 3, a day in which new 25% auto tariffs imposed by the U.S. took effect.
Carney said Canada will impose 25% tariffs on all vehicles imported from the U.S. that are not compliant with USMCA. The new tariffs will also apply to on the “non-Canadian content” of cars and trucks that are assembled in the U.S., Carney said in a news conference.
While signaling Ottawa’s decision is to copy the U.S. government, Carney noted Canada won’t put new tariffs on auto parts as Trump had done. And vehicle content from Mexico under the USMCA will not be targeted, because, according to Carney, the Mexican government is respecting the USMCA agreement. USMCA is a trade agreement that Trump's first administration negotiated to replace the decades-old North American Free Trade Agreement.
The new tariffs will apply to C$35.6 billion (US$25.3 billion) worth of imports, a Canadian government spokesperson said. All the money raised from the counter-tariffs will go directly to auto workers and companies impacted by the US levies, Carney said.
Trump also unveiled on April 2 his worldwide reciprocal tariff plan. A new blanket 10% tariff on all countries came into force on April 5 at 12:01 a.m. Eastern Time, and the countries with which the United States has the largest trade deficits will face an individualized reciprocal higher tariff, effective from April 9 at 12:01 a.m. Eastern Time. All other countries will continue to be subject to the original 10% tariff baseline.
Autos and auto parts are included in a White House fact sheet as goods that will not be affected by the new reciprocal tariffs. The fact sheet listed some goods will not be subject to the reciprocal tariffs, including articles subject to 50 USC 1702(b); steel/aluminum articles and autos/auto parts already subject to Section 232 tariffs, copper, pharmaceuticals, semiconductors and lumber articles; all articles that may become subject to future Section 232 tariffs; bullion; and energy and other certain minerals that are not available in the United States.
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