After China, Canada hits back with tariffs as Trump's auto tariffs trigger global backlash
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Synopsis
Canada has imposed 25% tariffs on certain US vehicle imports in retaliation to Donald Trump’s new auto duties, joining China in a growing backlash. The move intensifies global trade tensions and threatens major disruption to North America’s auto industry.
In a sharp escalation of global trade tensions, Canada has begun imposing a 25% tariff on select vehicle imports from the United States, joining China in retaliating against a new wave of protectionist measures introduced by President Donald Trump.
Canadian Finance Minister François-Philippe Champagne confirmed the retaliatory duties took effect early Thursday, branding Trump’s automotive tariffs as 'unwarranted and unreasonable', reports BBC. The new levies apply to fully assembled vehicles from the US that fail to meet content requirements under the Canada-United States-Mexico Agreement (CUSMA), as well as to non-Canadian or non-Mexican parts used in CUSMA-compliant vehicles.
The Canadian government emphasized that the burden of these tariffs would fall on Canadian buyers, but insisted they were necessary to protect domestic industry and sovereignty. “We’ll protect our workers, our businesses, and our economy,” Champagne posted on X.
Canada's action comes amid a brewing trade standoff, as Trump’s new 25% auto import taxes took effect, and additional duties on auto parts are expected next month. While Canada was not initially targeted in the latest round of US tariffs, it remains affected by Trump’s broader trade policies and his long-standing economic pressure campaign against top trading partners.
Chinese authorities, facing similar US tariffs, also responded with their own set of retaliatory duties, targeting American-made goods. Though Beijing has not specified the full scope, the move underlines a growing coalition of nations challenging Trump’s trade aggression.
Canadian Prime Minister Mark Carney, who is in the midst of an election campaign, vowed a firm response. “Canadians will not be intimidated,” he said during a campaign stop, criticizing Trump’s “hostile rhetoric” and attempts to dominate US-Canada trade relations.
The car industry in Canada, deeply integrated with American supply chains, is particularly vulnerable to such measures. Industry analysts warn of rising vehicle costs, potential job losses, and broader economic fallout if the tariff war continues to escalate.
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