Canada Says 25% Tariff on U.S. Autos to Kick In Starting Wednesday
Source: WSJ
April 8, 2025 at 3:46 pm ET
OTTAWA—Canada said its 25% tariff on U.S.-made vehicles that aren’t compliant with the North American trade deal would take effect on Wednesday.
Prime Minister Mark Carney had said last week this duty was in the offing, and it was in response to the Trump administration’s 25% tariff on all foreign-made cars, including from its northern neighbor and partner in the U.S.-Mexico-Canada trade treaty that was renegotiated during Trump’s first term. Under USMCA terms, vehicles can be shipped duty free so long as three-quarters of the components used originate from North America.
Canada is the U.S.’s largest export market for cars, and officials estimate that about 8% of the 750,000 vehicles shipped to Canada aren’t compliant with the trade treaty.
Under Canada’s auto-tariff plan, vehicles from Mexico wouldn’t be affected, and Ottawa has no plans to slap duties on auto parts given their importance in the integrated supply-chain network.
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Read more: https://www.wsj.com/world/americas/canada-says-25-tariff-on-u-s-autos-to-kick-in-starting-wednesday-8577fc6d
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