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by ALEXX ALTMAN-DEVILBISS | The National News Desk
Thu, April 3rd 2025 at 12:17 PM
Canada retaliates against tariffs by matching 25% on US-made vehicles (CNN Newsource)
WASHINGTON (TNND) — Canadian prime minister Mark Carney announced countermeasures against the United States Thursday after President Donald Trump rolled out a new set of tariffs on Wednesday.
Carney said they would be responding to the U.S. auto tariffs by matching the 25% tariffs on all vehicles that are not compliant with the Canada-U.S.-Mexico Agreement (CUSMA).
The government will also impose a tariff on non-Canadian content of any CUSMA-compliant vehicles from the U.S. Mexico won't be affected.
"Unlike the U.S., tariffs will not affect auto parts because we know the benefits of our integrated production system, and they will also not affect vehicle content from Mexico, who is respecting the CUSMA agreement," Carney explained. "And as well, we are developing a framework for auto producers in Canada to get relief from these counter tariffs, as long as they maintain their production and investment in our country."
Carney added the government is fighting the tariffs in court and has argued to the World Trade Organization that the tariffs violate international trade law.
"Our old relationship of steadily deepening integration with the United States is over. The 80-year period when the United States embraced the mantle of global economic leadership is over," he said.
This is a breaking news story and will be updated.
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