Canada will impose a matching 25% tariff on all vehicles brought in from the United States, Prime Minister Mark Carney revealed Thursday. He sharply criticized President Trump’s recently announced “Liberation Day” tariffs, calling them a major setback for international commerce.
Carney clarified that the new duties would impact all vehicles failing to meet the criteria outlined in the US-Mexico-Canada trade agreements, making it clear that Mexico would not be subject to these additional charges.
The prime minister expressed hope that this move would pressure the U.S. to reconsider its inward-looking economic stance, though he acknowledged that the current trade tensions may just be the beginning of a deeper conflict.
“Given the prospective damage to their own people, the American administration should eventually change course,” Carney told reporters. “But I don’t want to give false hope.”
President Trump sent ripples through global markets on Wednesday when he introduced extensive 10% tariffs on almost every imported product, including those from traditional allies such as the EU, Japan, and Israel.
He described the action as a bold “Declaration of Economic Independence,” asserting it would drive production back to American soil, while generating employment and growth at home.
Although Canada and Mexico avoided immediate inclusion in the new tariffs — including the headline-grabbing 25% tax on foreign-made vehicles — that exemption may be temporary.
Both countries are home to numerous facilities operated by American automakers, offering manufacturers lower production costs and a steady supply of vehicles for the U.S. market.
According to the U.S. Census Bureau, nearly $57 million in automobiles and components were imported from Canada. Additionally, the U.S. Commerce Department reported $87 billion in vehicle imports and $64 billion in auto parts from Mexico.
Even though the two neighbors were not hit by the broad tariff package, analysts from RBC Capital Markets warned that Canadian consumers could still feel the financial pinch from Trump’s trade moves.
“Tariffs on imports from Canada are still set to rise on Thursday. Auto tariffs announced last week will still push the average US tariff rate on imports from Canada to about 3.5% from 2.5% by our count,” RBC’s Nathan Janzen and Claire Fan said in a statement.
In response to Trump’s move, a small group of Republican senators broke from party lines and attempted to halt the implementation of tariffs against Canada, including the duties on steel and aluminum.
However, it is unclear whether the Republican-led House of Representatives will support or reject the proposed measures.
In Mexico, President Claudia Sheinbaum struck a more conciliatory tone, applauding the fact that her country was excluded from the tariffs announced by the U.S.
“This has to do with the good relationship we have built between the Mexican and U.S. government, which is based on respect,” Sheinbaum told reporters.
She reaffirmed her commitment to securing a rollback or reduction of tariffs on vehicles, steel, and aluminum.
{Matzav.com}