Canada is adjusting its stance on certain tariffs originally imposed in response to sweeping new U.S. trade policies imposed by President Donald Trump. Earlier this month, President Trump announced new taxes on raw goods like imported steel and aluminum, as well as vehicles assembled outside U.S. borders. The new auto tariffs are also expected to apply to individual car parts as early as next month.
In response, Canada has opted to impose counter-tariffs, including new taxes on vehicles imported from the U.S. Now, however, Canadian leaders are softening this response, allowing automakers to import U.S.-assembled vehicles without the extra tax if said automakers continue to invest in Canadian manufacturing.
“Our counter-tariffs won’t apply if they (automakers) continue to produce, continue to employ, continue to invest in Canada,” said Prime Minister Mark Carney on Tuesday, per a report from Reuters. “If they don’t, they will get 25-percent tariffs on what they are importing into Canada,” Carney added.
Beyond the auto sector, the Canadian government is also extending six-month tariff exemptions to select U.S. imports used in domestic manufacturing, food and beverage packaging, and processing industries. Additional relief covers goods critical to public health, healthcare, safety, and national security.
Some Canadian companies are already feeling the effects of the new trade policies, reporting job losses, as well as lower sales and profit projections.
Trump’s new trade policies seem to change on a daily basis, with the U.S. president stating earlier this week that he was open to working with the major automakers as they come to grips with a 25-percent tax on vehicles assembled outside the U.S. That said, no specific details were provided.
Meanwhile, new vehicles are reportedly piling up at ports around the country, and the full extent to which automakers plan to shift their manufacturing base to the U.S. remains uncertain.
Comments
The Automotive Industry is truly Global. Trump is wrong if he thinks that he can just claw it all back to the U.S. If he did that, and he expects production levels to stay the same . He is sadly mistaken. 1. The loss of jobs will lower the demand for new vehicles. Can’t buy when you are unemployed. 2. Lower demand for a vehicle no longer made here. Take back the Oshawa truck plant. Fine we will buy Ford or Ram trucks built here. Or a foreign built one. Anything to hurt a company that leaves. The travel industry has already seen a massive drop in travel bookings since it started. Allowed to continue there will an overall decline in sales and demand in all markets. Free trade will continue for the rest of the world market. The U.S. market is big. The world market is larger and if forced. Will win over the U.S.
If someone doesn’t like Trump’s tariff policies, just wait a few days…they’ll change. So good for business investment confidence !
Smith.. Dude.. No such thing as Fair Free Trade my friend. this new administration is attempting to level the playing field so that we are all on the same page!
Tariff’s would not be necessary if the rest of the players in this trade game were playing by the rules.
The Asians have been taking advantage of us since the end of WW2.
Time to put the foot down and create an obstacle for unfair trade.