94Ha Viewpoint
The Canadian Ministry of Finance announced on April 8 that the 25% tariff on American cars will take effect at 00:01 on April 9, Eastern Time.
Canadian Finance Minister Francois-Philippe Champagne said that Canada will continue to respond forcefully to all unreasonable tariffs imposed by the United States on Canada. The Canadian government is firmly committed to eliminating these US tariffs as soon as possible to protect Canadian workers, businesses, economy and industry.
Champagne said that Canada will also implement relief programs for automakers to encourage automakers to produce and invest in Canada and help maintain Canadian jobs.
On March 26, US President Trump signed a notice at the White House, announcing a 25% tariff on imported cars. This tariff measure officially took effect on April 3.
According to the document released by the White House, the 25% tariff applies to imported passenger cars (sedans, sports utility vehicles, etc.) and light trucks, as well as key auto parts (engines, transmissions, etc.), and will be extended to other parts when necessary.
On April 3, Canadian Prime Minister Carney said at a press conference in Ottawa that Canada imposes a 25% tariff on all imported American cars. All proceeds from the anti-tariff measures will be returned to the auto industry.
Countries such as Canada and Mexico are hit hardest by U.S. auto tariffs. According to S&P Global Automotive data, Mexico manufactured 4 million vehicles last year, 61% of which were exported to the United States. Canada manufactured 1.3 million vehicles last year, 86% of which were exported to the United States.
Many American automakers, such as GM and Ford, have chosen to set up factories in Canada, taking advantage of the geographical advantages and labor cost differences between the two countries to maximize production efficiency.
Some analysts believe that this tariff will not only directly impact Canada’s auto exports, but may also affect the entire North American supply chain, especially those parts suppliers that rely on cross-border transportation.
In early March, Trump decided to grant a one-month tariff exemption to the three major U.S. automakers, temporarily exempting them from the 25% import tariff on auto products imported from Mexico and Canada through the USMCA. However, the proportion of parts suppliers that meet the standards of the USMCA is significantly lower than that of vehicle manufacturers.
According to data compiled by the U.S. Consumer News and Business Channel, among the automotive products exported by Canada to the United States last year, 74.6% of the auto parts met its standards and 96.9% of the complete vehicles met the standards.
