Canada has announced a 25% tariff on some cars imported from the U.S., in response to new tariffs introduced by President Donald Trump that took effect Thursday.
Prime Minister Mark Carney said the tariffs would apply to vehicles that don’t meet the standards of CUSMA, the North American free trade agreement. It’s unclear how many U.S. vehicles will be affected.
Although many Canadian goods are exempt from Trump’s global tariffs—thanks to CUSMA—Canada still faces new duties on steel, aluminum, and some autos.
Carney criticized Trump’s trade policies, warning they could damage the global economy. He said the era of U.S.-led global trade, which Canada has depended on since World War II, is effectively over.
“The 80-year period of U.S. economic leadership and free trade is over,” Carney said, calling it “a tragedy.”
Carney and Trump recently spoke by phone and agreed to discuss the future of trade between their countries after Canada’s April 28 election.
why trump imposing trade tariffs?
Trump imposed trade tariffs as part of his “America First” economic policy. His main reasons included:
Protecting U.S. industries: He wanted to protect American manufacturers—especially in steel, aluminum, and autos—from foreign competition, which he claimed was hurting U.S. jobs and businesses.
Reducing trade deficits: Trump believed the U.S. was losing money in trade deals, particularly with countries like China, Mexico, and even allies like Canada. Tariffs were meant to pressure these countries into negotiating more “fair” trade agreements.
National security: He argued that relying on other countries for essential materials like steel and aluminum was a national security risk.
Leverage in trade negotiations: Trump often used tariffs as a bargaining chip to renegotiate trade deals, like turning NAFTA into CUSMA/USMCA.
Critics say the tariffs sparked trade wars, raised costs for American consumers and businesses, and hurt global trade, while supporters argue they helped bring some manufacturing back to the U.S.
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