Canada will hit the US with a reciprocal 25% tariff on all imported vehicles, Prime Minister Mark Carney announced Thursday — as he called President Trump’s Liberation Day tariffs a “tragedy” for global trade.
Trump’s sweeping tariffs explained
- A new 10% baseline rate and harsher “reciprocal” levies will impact dozens of countries, including key allies such as European Union members, Japan and Israel.
- Online Chinese retailers, such as Temu and Shein, are no longer exempt from tariffs, due to the closing of a trade loophole on de minimus goods.
- A 25% tariff has been issued on foreign-made cars, which impacts roughly half of all vehicles sold in America.
- Following Trump’s “Liberation Day,” the Dow plunged more than 1,000 points over fears of an all-out trade war.
Carney said the tariff’s will target all vehicles that are not compliant with the US-Mexico-Canada trade deals, assuring Mexico that the new tariff’s will not apply to the southern nation.
The prime minister touted that the blow should steer America clear of its protectionist policies, but contended that the trade war may only just be getting started.
“Given the prospective damage to their own people, the American administration should eventually change course,” Carney told reporters. “But I don’t want to give false hope.”
This is a developing story. Please check back for updates.