Canadian Prime Minister Mark Carney announced that Canada will levy a tariff on all American-made vehicles that are not compliant with the USMCA and that those Canadian counter-tariffs will match tariffs put on Canada’s auto industry. This Canadian measure follows the retaliatory tariffs imposed last month on about $60 billion worth of American goods in retaliation for President Trump’s initial tariff actions. Carney said that the President’s move to levy blanket tariffs on virtually every country will rupture the global economy and have devastating consequences for American workers and businesses.
Flavio Volpe, president of the Canadian Automotive Manufacturer’s Association, said the North American automotive sector is “about the most integrated sector in the world,” and this trade war is threatening that status.
American, Canadian, and global financial markets have dropped in value on the potentially toxic mix of weakening economic growth and higher inflation that a tariff war could create. Jean Charest, co-chairman of the Canada-U.S. Relations Council, said the financial markets are now in the most precarious of situations: a feeling of uncertainty.
We will continue to have updates on the situation around President Trump’s tariffs as it develops.
