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Éric Descarries
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The tariff saga continues
Éric Descarries
Hits: 690
Following U.S. President Donald Trump’s April 2 announcement regarding the planned imposition of 25% tariffs on cars built in Canada and on parts originating from the same country (except those complying with the CUSMA Automotive Agreement enacted in 2020), Canadian Prime Minister Mark Carney has decided to retaliate. He described the decision as unjustified and misinformed, and responded by imposing a 25% tariff on American vehicles sold in Canada, except for those built under the terms of the Agreement. However, this exception will not apply to American parts that were not manufactured in accordance with CUSMA.
Car parts manufactured in the United States but destined for Canadian assembly plants will, for their part, be spared. Ironically, vehicles built in Mexico will not be subject to an additional tax, since the country continues to respect the terms of the Agreement.
In the same vein, the union Unifor, Local 444, warns that the Stellantis plant in Windsor will have to halt production for at least two weeks following the announcement of these new tariffs.
A particularly complex issue to follow…
(Photo Stellantis)
Éric Descarries
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