The Department of Finance Canada has announced that new retaliatory tariffs on certain U.S. automobile imports will take effect at 12:01 a.m. EDT on April 9, 2025. The measures follow the United States’ imposition of tariffs targeting the Canadian auto industry, which Canada has deemed unjustified.
Under the new framework, a 25% tariff will apply to:
Fully assembled automobiles made in the United States that do not qualify as originating under the Canada-United States-Mexico Agreement (CUSMA/USMCA) Rules of Origin. Origin status is determined according to Canada’s Marking Rules of Origin.
The non-Canadian and non-Mexican content of fully assembled automobiles imported from the United States that do qualify as originating under USMCA rules. The value of Canadian and Mexican components in these vehicles is calculated in accordance with Canada’s CUSMA Rules of Origin Regulations. Importers may claim a default value of 15%, or a higher value if substantiated by documentary evidence.
Auto parts imported from the United States are not subject to retaliatory tariffs.
The Government of Canada will soon announce details of a tariff relief mechanism intended to support automotive producers that invest in Canadian production and employment. The measure is designed to mitigate economic disruption while reinforcing domestic industrial capacity.
In announcing the measures, Finance Minister François-Philippe Champagne reaffirmed the government’s commitment to defending Canadian economic interests and securing the removal of what it considers to be unlawful U.S. trade actions.
Comments
No comments on this item Please log in to comment by clicking here