Canada returns to US car rates with mutual measures

Canada claims to have started to impose a 25% rate on certain imports of vehicles from the United States, taking revenge against a similar measure by its neighbor.

The rates – or taxes on imports – will be paid by the Canadians who purchase some cars or their parts from the United States.

Confirming that the new taxes will apply after midnight on Wednesday, the Canadian Finance Minister Francois-Philippe Champagne said that his country was responding to “unjustified and unreasonable” rates “.

After returning to power, the President of the United States Donald Trump has triggered a series of these taxes, which apply globally and specifically aim for some of its best commercial partners, including Canada. He says they will face injustice in global trade.

Canada was not affected directly by the new American rates-which also entered into force at midnight-ma orawa was already in a row with Washington for Trump’s pre-existing policies, which taxed a series of articles brought beyond the border.

“We will protect our workers, our activities and our economy,” wrote Champagne on X, while confirmed the beginning of the Canadian retaliation.

A government information sheet clarified that Canadian importers would be forced to pay a 25% tax on some cars or parts:

Any fully assembled vehicles that come from the United States that were not compliant with the free trade agreement Cusma Nordamericano

Any “non -Canadian and non -Mexican content” that was part of a completely assembled vehicle that comes from the United States, even if he respects the cusma

The confirmation comes after Canadian Prime Minister Mark Carney – who is in an electoral struggle – has promised a strong response to Trump rates.

Trump also raged the Canadians with statements on taking the neighboring country.

Canadian rates were followed by retaliation measures from China later on the same day.

Canadian car rates come after Trump’s import taxes of 25% on the cars that enter the United States have entered into force. Taxes on the parts of the car will begin next month.

These moves were particularly painful for Canada, whose automotive industry is intertwined with that of the United States.

Together with China and Mexico, Canada had already been involved in a previous round of Trump rates, designed to pressure those countries to stem the flow of illegal migrants and drugs in the United States.

What emerged was a general tax of 25% paid by American importers for all goods from Canada, with the exception of those pursuant to the existing agreement of the North American free trade and with lower rates for energy, potassa, aluminum and steel. [BBC]