Canada’s retaliatory tariffs on the U.S. took effect on Wednesday morning. The maximum tariff on cars imported to Canada from the U.S. is set at 25 percent, with room to go lower based on the country of origin for the content of the cars, which is in line with guidance in the USMCA.
Automotive News reports that more than 90 percent of vehicles exported from the States to Canada are USMCA compliant. Those vehicles face a 25-percent tariff on their contents not produced in Canada and Mexico. Finance Canada calculates that the vehicles in question contain 85 percent U.S. content. That math comes out to a 21.25-percent import tariff on the majority of cars assembled in the U.S. and sold in Canada.
“This represents the estimated average of Canadian and Mexican content in vehicles made in the U.S.,” a Canadian finance department spokesperson said in an email. “Importers will have the option to claim a higher value of Canadian and Mexican content, thereby reducing the value-for-duty of the finished vehicle that is subject to the 25-percent tariff,” the spokesperson added.
“The government is firmly committed to getting these U.S. tariffs removed as soon as possible, and will protect Canada’s workers, businesses, economy and industry,” Finance Minister François-Philippe Champagne said. He vowed to push back on “all unwarranted and unreasonable” tariffs imposed by the United States.
This new Canadian tariff goes into effect on the same day that President Donald Trump announced a 90-day pause on the reciprocal tariffs announced on “Liberation Day,” which went into effect on April 3rd. However, the 25-percent tariff on all cars imported to the U.S., with temporary exemptions for USMCA-compliant vehicles, hasn’t been paused or rescinded.
Markets reacted favorably to Trump’s announcement, with the S&P 500 up more than nine percent at market close on Wednesday.
Comments
We should retaliate back on Canada for retaliating against our instigation! Our 51st state is the enemy within! 450% TARIFFS ON ALL OF CANADA NOW!!!
Or something like that, probably.
Trump always says he likes Tariffs and so easy to win…….
What a stupid comment !
John, some sarcasm is needed sometimes to keep ourselves sane. That’s all this is.
For the record, this “John” picked up on the sarcasm, even if the other one didn’t. LOL.
At least some Johns are smart cookies!
Finish your sarcasm with “…” so people know.
Blazer, people like you make your country look ridiculous. Show some respect, and get the facts before you comment. Also, go ahead and tariff all you want. Doesn’t scare us. You need our products more than we need yours. Let’s get along and trade freely. It has worked for hundreds of years.
I think you missed the sarcasm as well lol. I wholly agree with you.
While sarcasm may escape some, there is a symbol you can place after your statement to show your intent is sarcasm, this is it, /s, and that’s no sarcasm.
Canadians are raving about those Chinese EVs, so, apparently, they couldn’t care less.
Chinese EVs make it into Canada it will be the end of their auto industry (which GM, Ford, and Toyota produces in Canada plenty) and the end of Unifor. PERIOD! If you think the Chinese will produce a single car in Canada to appease the Canadians you are living under a rock. Those Canadians raving about that, best they be careful what they wish for. China is not interested in mutual benefit. They are interested in “you depend on me but I won’t depend on you.” Ask Sri Lanka how their debt diplomacy is working out for them.
The best solution is free trade within North America. Canada wins and so does US and Mexico.
We are gonna be SO RICH! Every American will be SO RICH from all this money$$$ And everyone is going to get some.
Ya unfortunately the only people getting rich are trump and his family and his billionaire buddies the fix is in.Its called Insider trading.
I bought 2 new cars last year. Paid 10 percent SALES tax… yeah. That was not cool. Insurance is through the roof. How about we get a break on insurance and maybe registration fees, put some money back in my bank account, put some food on my table. So I have enough car now to last about 20 years, my last car I drove for 34 years, no joke.
we do not care how much you are rich and how much you buy cars
Spoken like a true Russian.
Joe, the insurance is high because Bribhim let a million illegals in and let them drive around impaired and kill American citizens.
Wrong Allie………… get back in your Trump trailer.
I’m sure it has nothing to do with the fact that vehicles cost a lot more than they did just 5 years ago…kind of makes sense the the cost to insure one would go up.
100% spot on –especially here in Calif with Newsom. So many illegals driving that cops give them a ticket at the accident scene and let them go because they no they’ll never show up to court–let alone pay the ticket
Good luck trying to pull that off with any car made these days. And I mean ANY. My 2016 Rav4 transmission s*** the bed at only 90k miles. And it was a meticulously maintained one too.
Like I said. Buy what you like. Because they are ALL garbage these days including Toyota.
Why, this is good news! Instead of buying stuff that is cheap now we can buy stuff that is more expensive, and that means we will all be more rich because we buy expensive things. I think it is great. Why not make everything cost ten times as much, then we can all brag to each other about how rich we are.
The thing we don’t know is the value of the vehicle as built by the manufacturer.
The tariff is not on the sticker price but on the value as built but what is that number?
I am not in USA neither in Canadá neither in China, so for us is the same and we do not care how much you change your car and how much you pay, but most of north american people are rich people who can afford whatever your president do
and the pressure of water must be free, in our trips to emirates the showers in the resorts are wonderful, full of water and pressure
There is no pressure issue here unless you live in NJ because the water here is full of calcium (hard water) and gunks up our shower heads and faucets. Have to keep cleaning them with Lime Cleaner or soak them in vinegar. Otherwise I really don’t understand Trumps beef with showerheads nor where that even comes from.
As for the Emirates, Dubai specifically, I will say, their washing machines suck. Took me a whole damn day just to do a whole load of clothes from dirty to fully dry.
The last time the US attacked Canada, we burned the white house down to the ground and all the American terrorists dissipated like rats.
Rick, open a book, Canada did not burn down our Whitehouse.
Stop protesting and get an education, if you do that one thing maybe you’ll get a job and be so tiered on the weekend you’ll just want to rest.
Al didn’t get through the 3rd grade did you?
Al, YOU open a book, and maybe learn a bit of history. Canada (Upper Canada & Lower Canada) are the ones who burned down the white house and the capital building too.
HMK, you are such a fool the British burned down the White House in the war of 1812 dumb as* . Stop burning the history books Democrats, the real Americans know their history.
HMK, if you’re a patriot, you would know this, but you would rather spew hate and lies. Go burn something down like the rest of ilk, I’ll keep working making money.
Al, I will tell you one more time, Canada, or Canadians, burned down the white house and capital building. The name “Canadian” has been used for people residing in what is now Canada for a very long time, dating back to the French colonization of the 16th, 17th, and 18th centuries. Not spewing hate or lies. Canadians don’t hate, or bully.
Hey Rick, get your history straight. Canada was not a country then, England burned down the white house. But it figures, you are a canadian liberal ass. Every time I purchase something I see the usa price and the canadian price 50% more. Every american that uses TD bank and buys Tim Horton products is a dumb ass.
Your all missing some points. GM makes a 21% mark up on Pick up trucks
I don’t need a vehicles just pointing out facts
Are we also going to also have to pay sales tax on the tariffs, being that what we buy will increase in price?
Not if your income is over $50,000,000 a year.
I will just leave this here…
Cadillacs New EV’s only contain 12% US/Canadian parts. So how much is actually US made? Less than 10%?
Also notable to mention the Cadillac Optiq is built and ASSEMBLED in Mexico, then shipped into the country for Americans to buy and be further subsidized by the American Taxpayer with a $7,500 EV Tax Credit. Shame on you Cadillac and GM.
“imported to Canada from the U.S. ”
Write “exported to Canada from the U.S. ” or “imported by Canada from the U.S. “
Drill baby drill
To clarify the article’s math, the 21.25% tariff is only on its parts that are not USMCA compliant, not the whole car. Otherwise, there would be less than 5 percentage points difference between the tariff on a car that’s not USMCA compliant, and one that is, which would defeat the purpose of differentiating between the two.