Canada Imposes Retaliatory Tariffs on American Cars

Canada’s retaliatory tariffs on American cars have taken effect today, potentially increasing the prices of American-made vehicles by up to 25 percent. According to Flavio Volpe, president of the Canadian Auto Parts Manufacturers Association, 60 percent of the cars purchased in Canada each year are imported from the United States.

Volpe highlighted that Canada is one of the largest export markets for American-made cars, with an estimated 1.2 million vehicles imported from the United States annually.

Under the rules of the United States-Mexico-Canada Agreement (USMCA), Canada has imposed a 25 percent tariff on every vehicle part imported from the United States that does not originate in Canada or Mexico. Additionally, a 25 percent tariff applies to fully assembled cars that fail to comply with USMCA regulations.