Canada Imposes 25% Tariff on US Cars in Retaliation
Canada will impose a 25% tariff on cars imported from the US that are not covered by a free trade agreement in response to US import tariffs.
This was announced in Ottawa by Canadian Prime Minister Mark Carney, Ukrinform reports.
‘Canada will respond using the US approach: we are imposing a 25% duty on all cars imported from the US that do not meet the terms of the North American Free Trade Agreement, as well as on non-Canadian components of cars imported from the US, even if they meet the terms of free trade,’ Carney said.
He stressed that, unlike the US tariffs, Canada's mirror measures will not affect automotive parts ‘because we recognise the benefits of our integrated production system’. The prime minister also clarified that the duties will not apply to automotive components from Mexico, as the country is in compliance with the terms of the free trade agreement.
According to Carney, due to these duties, Canada plans to raise an additional $8 billion to the state budget, which will be directed ‘directly to workers and companies affected by the duties’.
The Prime Minister also noted that the introduction of tariffs by the United States against many countries has changed the global economic system, depriving the United States of its role as a leader.
‘The actions of the U.S. administration, although not specifically directed against Canada, will lead to a breakdown in the global economy and have a negative impact on global economic growth. The global economy today is fundamentally different from yesterday. The US-based global trading system that Canada has relied on since the end of the Second World War, a system that, despite its imperfections, has allowed our country to prosper for decades, is no longer in place,’ Carney said.
As The Gaze reported, on 2 April, US President Donald Trump officially announced the start of a trade war with all countries of the world simultaneously, announcing tariffs of 10% to 50% on imports to the US depending on the country of origin.