Canada Exempt from U.S. Reciprocal Tariffs, but Auto Tariffs Hit Tonight
U.S. President Donald Trump’s latest tariff announcement has delivered a mixed outcome for Canada: while the country escaped broad U.S. “reciprocal global tariffs” on April 2, a 25% tariff on foreign-made cars and light trucks will still strike the Canadian auto industry starting at midnight tonight. Prime Minister Mark Carney has vowed to fight back, as duties on non-compliant Canada-United States-Mexico Agreement (CUSMA) goods, including autos, aluminum, and steel—imposed last month—persist.
PM Carney has vowed to retaliate. “We are going to fight these tariffs with countermeasures,” he said, heading to an emergency cabinet meeting. He noted U.S. signals of potential tariffs on pharmaceuticals, lumber, and semiconductors, adding, “In a crisis, it’s important to come together. It’s essential to act with purpose and with force, and that’s what we’ll do.”
Carney promised further updates after stakeholder meetings tonight and tomorrow. Ontario Premier Doug Ford, meanwhile, warned of assembly line shutdowns within 10 days if the tariffs persist, rejecting anything short of “zero tariffs.”
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