U.S. President Donald Trump is signing another tariff to Canada and signed an executive order on Wednesday that would attack all non-US-made cars with massive import taxes.
Trump said the U.S. would impose a 25% tariff on these imports, but it is not clear when to apply.
The president said automatic tariffs will start on April 2, but advised them to start at a base rate of 2.5%.
“What we're going to do is 25% tariffs on all cars that are not made in the U.S.. If they are made in the U.S., there are absolutely no tariffs. We're going to start with a base of 2.5%, which is where we are and we're going to get a center of 25%.
The tariff will apply to finished cars and some components such as engines, Released from the White House explain.
Imports of cars imported into the United States under the United Nations-Mexico Agreement (CUSMA) will only be subject to tariffs on their non-U.S. components.
Automobile is the second largest Canadian exporter after oil and the most profitable manufacturing product that Canada has sold to the world so far, linked to thousands of Canadian jobs.
This makes these tariffs more important than any other Trump trade threat, including a 10% energy levy and a 25% tariff on steel and aluminum.
Federal leaders oppose tariffs
Liberal leader Mark Carney said the tariffs were a “direct attack” on Canadian workers. He said the government will look for options that may retaliate against the United States
“We have anticipated this possibility,” he told reporters Wednesday night. “We will take steps that are in the interests of Canadian workers in Canada. We will support Canada. We will be united.”
Carney will return to Ottawa from the campaign trail Wednesday night and will meet with members of his U.S. Canadian Cabinet Committee on Thursday to discuss how to respond. Earlier on Wednesday, he promised a $20 billion package to protect the Canadian auto industry.
Liberal leader Mark Carney brought his campaign to Windsor on Wednesday touting a $20 billion proposal to protect Canada's auto industry. Pratyush Dayal report.
New Democratic leader Jagmeet Singh said Trump's latest move was a “full attack on the automakers.”
“There are currently thousands of workers wondering if their boundaries will be closed, if they will be out of work. … We have to fight back like hell,” he said.
Singh called for retaliatory tariffs and support for workers.
Before Trump took action, Conservative leader Pierre Poilievre said the U.S. president needs to “knock it down” when asked about the possibility of further tariffs.
“These tariffs are just causing chaos in the market. They have lost workers on both sides of the border. Stop threatening Canadian tariffs and stop talking about our sovereignty,” he said Wednesday afternoon.
Ontario Prime Minister Doug Ford said Canada will need to deal with new tariffs and called for retaliatory tariffs that “maximize American suffering.”
“I feel bad about Americans, but it's a person, and President Trump is causing this chaos,” he told reporters at Queen's Park. “We're not going to turn over. We're going to do everything we can.”
Flavio Volpe, president of the Auto Parts Manufacturers Association, said it is creating uncertainty about paralyzing the industry, not just in Canada.
He told CBC News that the evolving tariff threat has also scared U.S. investors.
“[Trump] He moves the stick twice a day,” he said while awaiting the announcement Wednesday: “You don’t know what happens when you wake up in the morning. ”
Trump himself reached the deal, which Walp said before the announcement that Walp predicted a 25% tariff, but some exemptions, which may be part of North American under Kusma’s rules.
Indeed, Canada is a rare trading partner in the United States, unlike the rest of the world, it is actually cars and parts purchased from the United States rather than for sale.
The first Trump administration has filed a report on automatic tariffs, with little mention of Canada. This shows that Canada's share of North American automobile production has been relatively stable since the 1980s, and the real shift has been produced from the United States to Mexico.
But the second Trump administration is more aggressive in embracing trade protectionism, and its threats, hoping to turn production to the United States
