On April 3, United States President Donald Trump announced a new round of tariffs, dubbed “Liberation Day” tariffs. The key points that will affect Canadians include:
- 25% tariffs on imported automobiles and auto parts: This includes Canadian-made passenger vehicles, but the tariff will only apply to the value of non-U.S. content in those vehicles; and
- 10% baseline tariff on all goods entering the US: While this applies to many countries, Canada is exempt from this additional baseline tariff due to previously announced tariffs.
Other tariffs on Canada recently implemented by the US include:
- March 4: 25% tariff on $30 billion worth of U.S.-origin goods
- March 6: 10% tariff on energy or energy resources and 25% tariff on potash not entered duty-free under the USMCA
- March 7: 10% tariff on dairy products and lumber
- March 13: 25% ad valorem tariffs on $29.8 billion CDN worth of U.S.-origin goods
The tariffs are already in effect and are part of wider trade policy shifts, with ongoing negotiations between the two countries. In response, Canada has implemented retaliatory tariffs on U.S. goods.
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