Canada's Tariff Retaliation on U.S. Vehicles

Canada announces a 25% tariff on non-compliant U.S. vehicles as per the U.S.-Mexico-Canada trade deal, excluding auto parts and Mexican content, declared by Prime Minister Mark Carney.

In a significant move, Canada will enforce a 25% tariff on all vehicle imports from the United States that do not comply with the U.S.-Mexico-Canada trade agreement. This announcement was made by Prime Minister Mark Carney during a press conference on Thursday.

The new tariff strategy is aimed at ensuring compliance with the trade deal across the automotive industry. Carney emphasized that these tariffs will not apply to auto parts, easing concerns for automotive suppliers.

Furthermore, vehicles with content originating from Mexico will not be affected by these tariffs, highlighting a targeted approach solely aimed at U.S. imports typically exempt in such strategies.

(With inputs from agencies.)