financetom
Business
financetom
/
Business
/
Factbox-How Canada is retaliating against US tariffs
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Factbox-How Canada is retaliating against US tariffs
Apr 4, 2025 12:01 PM

OTTAWA (Reuters) -Canadian Prime Minister Mark Carney announced limited countermeasures against U.S. auto tariffs on Thursday, imposing a 25% tariff on vehicles imported from the United States that are not compliant with the U.S.-Mexico-Canada trade deal.

Carney, who replaced Justin Trudeau as prime minister last month, said the new tariffs would not apply to auto parts and would not affect vehicle content from Mexico. He said the tariffs collected from Canada's latest measure, estimated to be about C$8 billion before a remission process for tariff relief, will go directly to auto workers and others affected.

U.S. President Donald Trump imposed 25% tariffs on goods that did not comply with the USMCA trade agreement on March 6. He then imposed tariffs on steel and aluminum imports on March 11 and a 25% import tax on autos took effect on Thursday. But Trump spared Canada from broader global tariffs.

Below are retaliatory measures Canada has taken.

FIRST TRANCHE

Trudeau imposed 25% tariffs on C$30 billion ($21.10 billion) in goods imported annually from the U.S. on March 6 in response to Trump's initial duties. 

The C$30 billion was part of an overall retaliation plan to target C$155 billion worth of imported goods from the U.S., though the remaining C$125 billion has been delayed. 

The first tranche of retaliation includes 1,256 products such as orange juice, peanut butter, wine, spirits, beer, coffee, appliances, apparel, footwear, motorcycles, cosmetics, and pulp and paper.

In terms of the value of imports associated with some of the major products, cosmetics and body care are worth C$3.5 billion, appliances and other household items are worth C$3.4 billion, pulp and paper products are worth C$3 billion and plastic products are worth C$1.8 billion.

STEEL AND ALUMINUM, AUTOS

Effective March 13, Canada imposed 25% tariffs on an additional C$29.8 billion worth of products imported from the U.S. They are expected to remain in place until the U.S. eliminates its steel and aluminum tariffs on Canada.

The tariffs imposed in retaliation to steel and aluminum comprise a wide variety of items such as candles, glues, umbrellas, kitchenware, gold, platinum, jewelry and more.

The new auto tariffs will apply to car imports worth C$35.6 billion, the Prime Minister's Office said on April 3.

These will include 25% tariffs on non-USMCA-compliant fully assembled vehicles imported from the U.S. and 25% tariffs on non-Canadian and non-Mexican content of USMCA-compliant fully assembled vehicles imported from the U.S.

NON-TARIFF MEASURES

Trudeau had said Canada is also considering non-tariff retaliatory measures potentially relating to critical minerals, energy procurement and other partnerships. 

Asked on March 25 if non-tariff measures such as export controls or export taxes are on the table, Carney said they are options.

Canadian provinces have taken U.S. liquor off store shelves and Ontario Premier Doug Ford said all U.S.-based companies will be banned from taking part in government procurement. 

Ontario scrapped its C$100-million contract with Trump ally Elon Musk's Starlink.

Canada has frozen all rebate payments for Musk's Tesla and banned the electric-vehicle maker from future EV rebate programs. Toronto stopped providing financial incentives for Tesla vehicles purchased as taxis or ride shares because of trade tensions with the U.S.

Canada also plans to develop a framework for auto producers that incentivizes production and investment in Canada, the PMO said on April 3.

($1 = 1.4220 Canadian dollars)

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Ferguson Enterprises Insider Sold Shares Worth $267,319, According to a Recent SEC Filing
Ferguson Enterprises Insider Sold Shares Worth $267,319, According to a Recent SEC Filing
Oct 17, 2024
05:22 PM EDT, 10/16/2024 (MT Newswires) -- Richard Winckler, Chief Accounting Officer, on October 14, 2024, sold 1,325 shares in Ferguson Enterprises ( FERG ) for $267,319. Following the Form 4 filing with the SEC, Winckler has control over a total of 1,000 shares of the company, with 1,000 shares held directly. SEC Filing: https://www.sec.gov/Archives/edgar/data/2011641/000112760224025627/xslF345X05/form4.xml Price: 202.81, Change: -0.03, Percent...
Lucid expects bigger quarterly loss than estimated, plans stock offering
Lucid expects bigger quarterly loss than estimated, plans stock offering
Oct 17, 2024
(Reuters) -Electric vehicle maker Lucid Group ( LCID ) said it expects to report a bigger-than-expected loss for the third-quarter and announced a public offering of over 262 million shares, sending its shares down 12% in after-market trading on Wednesday. Additionally, majority stockholder, Saudi Arabia's Public Investment Fund, said it would purchase 374.7 million shares of the company. The fund...
Compass Diversified Board Approves $100 Million Share Repurchase Program
Compass Diversified Board Approves $100 Million Share Repurchase Program
Oct 17, 2024
05:25 PM EDT, 10/16/2024 (MT Newswires) -- Compass Diversified ( CODI ) said late Wednesday its board authorized a new $100 million share repurchase program. The company may buy back the shares through Dec. 31 under the program. Its shares were up about 1.6% in after-hours activity. Price: 22.05, Change: +0.34, Percent Change: +1.57 ...
K92 Mining Sees 'Significant Improvement' in Economics With Updated Kainantu Gold Mine Project Development Plan
K92 Mining Sees 'Significant Improvement' in Economics With Updated Kainantu Gold Mine Project Development Plan
Oct 17, 2024
05:25 PM EDT, 10/16/2024 (MT Newswires) -- K92 Mining ( KNTNF ) , which saw its shares drop more than 5% today, after trade Wednesday reported the results of its updated integrated development plan (IDP) for an expansion of its Kainantu gold mine project in Papua New Guinea. The updated IDP includes two scenarios: the Kainantu stage 3 expansion definitive...
Copyright 2023-2026 - www.financetom.com All Rights Reserved