Canada will impose a 25% tariff on some US cars from this week in response to similar measures taken by the US side.

Canada will impose a 25% tariff on some American cars starting Wednesday.

Canada will begin levying a 25% tariff on certain imported American cars starting Wednesday in response to similar measures taken by the United States. Canadian Prime Minister Mark Carney announced this measure on April 3, just hours before the U.S. imposed a similar tax on all imported cars from Canada, without specifying an implementation date.

Canadian Finance Minister Francois-Philippe Champagne stated that Canada's countermeasures would take effect at 00:01 Wednesday (04:01 GMT). Last week, Carney explained that Canada's tariffs would target "all vehicles imported from the U.S. that do not comply with the North American Free Trade Agreement (USMCA)."

The director of Canada's government office pointed out that this move involves $35.6 billion CAD (€23 billion) worth of U.S. car imports.

Canada's tariffs will affect sedans and light trucks produced using less than 75% North American parts, which account for approximately 10% of all cars shipped from the U.S. to Canada, or around 67,000 vehicles annually.

Last week, U.S. President Donald Trump announced new tariffs on nearly all countries worldwide, but Canada was not affected. Currently, all products from these countries will face at least a 10% tariff on U.S. goods. However, Ottawa, the largest trading partner of the U.S., is also subject to additional U.S. tariffs on steel and aluminum, apart from cars. Since March, products not complying with USMCA terms have been subject to up to 25% U.S. tariffs.

Ottawa has imposed retaliatory tariffs on $30 billion CAD worth of American consumer goods as well as $30 billion CAD worth of U.S. steel and aluminum imports.

Canadian Prime Minister Carney agreed during a phone conversation with President Trump in late March to discuss the future of bilateral trade after Canada's parliamentary election on April 28. Products from Canada and Mexico that comply with the USMCA are currently exempt from U.S. new taxes.

Source: rfi

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