Wed. Apr 2nd, 2025

President Donald Trump of the United States struck a further blow to a vital Canadian industry when he announced 25% tariffs on all auto imports entering the nation

OTTAWA, President Donald Trump of the United States struck a further blow to a vital Canadian industry when he announced 25% tariffs on all auto imports entering the nation.
We were losing all of our (auto) factories prior to my election. Trump stated in the White House on Wednesday afternoon that they were being constructed in Canada and Mexico.
“There will be no tariffs if you build your car in the United States, but we will effectively be charging a 25% tariff,” he added.

The Canada-U.S.-Mexico Trade Agreement, which was negotiated under the first Trump administration, does not seem to include any carve outs for automobiles constructed under its terms. The United States, Canada, and Mexico are all part of the North American car industry.
According to the rules of origin of the trade agreement, commonly known as CUSMA, passenger cars and light trucks must have 75% North American content in order to be exempt from tariffs. According to regulations, a car manufacturer must use 70% North American steel and aluminium. There are labour regulations as well.
Trump said the automobile tariffs were permanent and automakers would “have to move their parts divisions back to the United States.” The president said “if parts are made in America, and a car isn’t, those parts are not going to be taxed or tariffed.”
“For the most part I think it’s going to lead cars to be made in one location,” Trump said.
Markets and the car industry are uneasy as a result of the president’s intermittent trade war. After hours trading on Wednesday saw a decline in the shares of the Big Three automakers: General Motors, Ford, and Stellantis. Additionally, Tesla’s stock was down.
“President Trump is at it again,” said Ontario Premier Doug Ford on social media.
“His 25 per cent tariffs on cars and light trucks will do nothing more than increase costs for hard-working American families,” Ford posted. “U.S. markets are already on the decline as the president causes more chaos and uncertainty. He’s putting American jobs at risk.”

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